South Africa Weighs Tightening Bank-Disclosure Laws on Mortgages
- High rejection rate for loan applications worrying: minister
- Banks cited poor affordability, housing department says
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South Africa intends to compel banks to disclose more information about their mortgage-lending practices to boost access to home loans among previously disadvantaged citizens, Human Settlements Minister Mmamoloko Kubayi said.
The government plans to change the Home Loan and Mortgage Disclosure Act, a law promulgated in 2000 that requires lenders to provide details of home loans they’ve approved, Kubayi said at a briefing in Pretoria on Monday. The proposed amendments would enable the state to investigate consumer complaints about home loans and raise penalties for lenders over non-compliance, she said.