Dear Editor
The CCCFA Amendment Bill is probably one of the biggest ever attacks on the New Zealand financial markets by a government in the history of New Zealand.
On 1st of December 2021 the bill was put into law. Prior to this top officials from senior banks in NZ after reading the bill warned Hon. David Clark of the devastating effects this could have on the New Zealand financial markets. The bill was put into place despite those warnings.
The bill was meant to be designed to protect New Zealanders from 2nd tier lenders, but in fact it was designed to take control of the financial abilities of New Zealanders.
Within weeks of its implementation major banks were pulling approvals; home loans went from 7 days to 6 weeks, car loans from 1 day to 10 days. The paperwork went through the roof.
By January 2022 under the weight of huge complaints, Hon. David Clark said he would launch an investigation into what was going wrong, blaming Covid and rising interest rates as the issue. As it became obvious that there were serious issues, David Clark started to blame Kris Faafoi stating he had taken over a portfolio that Kris Faafoi had started.
Then David Clark announced there would be changes to the bill, but guess what: they are not to take place till August 2022.
New Zealanders under unprecedented hardship after the longest lockdown in the OECD came out to find their own Government had imposed legislation to inhibit their ability to borrow funds against their own assets.
Let’s put this in context. I could borrow more out of ANZ Australia than ANZ New Zealand.
The owner of Tall Poppy says it’s the single issue that had most affected the NZ housing market. Squirrel says it’s just terrible what it has done to the NZ housing market. An NZ Government has actually collapsed a real estate market. Why would you ever invest in New Zealand real estate?
Illuminate mortgages CEO Trent Bradley said that November 2021 he was paying brokers $10k a month as they were doing 10-15 mortgages a month. He made about $1500 per mortgage; now for the same effort they are only doing 4-6 mortgages a month. Do the math, he will be closing.
The New Zealand Government has used the CCCFA to collapse the property market. Many Kiwis have lost everything, many are still to lose everything. It’s wrong and the Government should be held accountable.
Where is our media voice? We have none.
Currently, 2nd tier lenders are making a killing as Kiwis in hardship have no other option.
George Lancaster
