The Coalition is considering stripping the prudential regulator of some of its powers to regulate mortgage borrowing, and overhauling credit laws that MPs fear are locking first homebuyers out of the property market.
The opposition launched a Senate inquiry into mortgage regulations in August, fuelled by concerns that rules aimed at reducing the riskiest forms of borrowing had gone too far and made banks too cautious about lending to first homebuyers.
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Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com
