Mortgage lending should be removed from CCCFA

While it’s clear that a heap more financial services regulation under the new coalition government is unlikely, it will rewrite the Credit Contracts and Consumer Finance Act (CCCFA).

The National-Act coalition agreement puts the rewrite as a priority “to protect vulnerable consumers without unnecessarily limiting access to credit”.

That aligns with clause 48 of National’s 100 point plan to “cut financial red tape that is stifling investment, including significantly reducing the scope of the CCCFA which has restricted access to credit”.

How, and to what extent, the CCCFA will be revised is yet to be determined, but mortgage adviser and Advice HQ founder David Green says mortgage lending should be taken out of the CCCFA and given its own legislation.