According to a proposal by The Melbourne Business School's Centre for Ideas and the Economy (CITE), the Government needs to play a greater role in supporting home mortgages.
Professor Joshua Gans and Christopher Joyce say more competition
would enhance housing affordability, provide an efficient source of
funds to corporate businesses and small to medium enterprises and protect
Australia from future financial crises. The report said: “The Commonwealth needs to
investigate … government institutions that can be introduced to support
the provision of a minimum level of liquidity in the economy given the
emergence of the new RMBS market.”
The proposals have been backed by the Mortgage and Finance Association of Australia, the Australian Securitisation Forum, as well as Bank of Queensland and Aussie Home Loans.
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