The Insurance Council of Australia (ICA) has welcomed the Privacy Amendment Bill 2012 passing through parliament as an acknowledgment of the vital role of Lenders Mortgage Insurance (LMI).
ICA CEO Rob Whelan said: “The ICA supports the introduction of a stronger, more effective national privacy regime. In particular, the ICA has endorsed the proposed reforms to allow credit repayment history information to be included in an individual’s credit information file as part of more comprehensive credit reporting.”
Whelan said the industry welcomes the recognition that direct access to the complete credit report, including repayment history information, is necessary to enable mortgage insurers to accurately assess risk.
“Mortgage insurers provide greater access to home ownership, particularly for low income, low equity and higher-risk borrowers who have the capacity to repay a loan but do not have a significant deposit,” said Whelan.
“Lenders Mortgage Insurance (LMI) plays an important role in the Australian residential mortgage market by helping first time buyers get on the property ladder.
“We are very pleased that all sides of politics in Federal Parliament have recognised the important role LMI plays in the housing and financial market,” he added.