62Housing Australia must establish arrangements for approving participating lenders

62  Housing Australia must establish arrangements for approving participating lenders

 (1) Housing Australia may approve, in writing, a lender to provide mortgages in connection with arrangements.

 (2) Housing Australia may revoke an approval under subsection (1) by notifying the lender in writing.

 (3) Housing Australia must establish criteria and processes for the approval of entities under subsection (1), and for the revocation of such approvals under subsection (2), which must include criteria directed at assessing the following matters:

 (a) the entity’s standard of customer care, including its treatment of borrowers in hardship; and

 (b) the competitiveness of the mortgage products that the entity would offer in connection with arrangements, including interest rates and other fees and charges; and

 (c) the quality of an entity’s loan origination processes (including distribution channels, such as branches or online portals, and origination channels, such as use of mortgage brokers) and the associated level of financial risk to the Commonwealth; and

 (d) the entity’s reputation; and

 (e) the extent to which approving the entity would promote competition in lending and related markets; and

 (f) the extent to which all entities approved, considered together, could undertake credit activities across Australia (including through other entities providing credit services); and

 (g) whether the entity holds all the licences and approvals it would require to provide mortgages in connection with arrangements; and

 (h) the lender’s capacity to work with Housing Australia over the life of arrangements and the Help to Buy program.