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Absa plans big home loan push
Business Report - South Africa
Absa has launched a new strategy to significantly increase the percentage of home loans it obtains through its internal operations, posing a new threat to the mortgage origination industry.

All the major banks in 2009 renegotiated the agreements they had with mortgage originators with the specific aim of slashing the commission paid to originators. The viability and sustainability of the mortgage origination industry has also been knocked by the lower volume of home sales.

This environment led to listed Finbond exiting the mortgage origination market last year and repositioning itself in the microfinance market.

Saul Geffen, the chief executive of ooba, one of the country's largest mortgage originators, declined to comment on Absa's new strategy and its potential impact on the mortgage origination industry.

Reserve Bank data show that Absa was the home loan market leader with 30.57 percent of mortgage advances at the end of January, followed by Standard Bank (30.7 percent), FirstRand (18.48 percent) and Nedbank (16.83 percent).

Saks Ntombela, the head of product at Absa Retail Bank, said on Friday Absa Home Loans had decided to enhance its multi-channel strategy by expanding its direct sales force and inviting estate agents to sign non-exclusive contracts directly with Absa.
Business Report

Owners responsible for tenants' conduct
RealEstateWeb - South Africa
Unruly tenants will attract fines - and should be made to pay them.

One of the things that owners of sectional title units can find particularly difficult to accept, especially if they live far away from the scheme in which they have invested, is that they are, in terms of Prescribed Management Rule 69, responsible for their tenant's conduct while he or she is living in the scheme.
Many owners expect the trustees or the managing agent to talk or write to the offending tenant - "because, after all, they are there in the building with him" (and this is on occasion done) but it is still the owner's or the owner's representative's duty to ensure that the tenant complies with all conduct and compliance rules.
Real Estate Web

Conveyancers 'must do more' to tackle mortgage fraud
Introducer Today - UK
Conveyancers should take on a more pro-active role in tackling mortgage fraud - or risk losing business.

The call has come from Eddie Goldsmith, chairman of the Conveyancing Association.

He says it is clear that if conveyancers don't take action, lenders will simply continue reducing their panels.

In 2010, in an attempt to reduce fraud, a number of major lenders announced a move to reduce the number of conveyancing firms on their panels.
Introducer today

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