Regulatory AlertsAPG 223 Residential Mortgage Lending
The Australian Prudential Regulation Authority issued APG 223 to provide guidance on prudent risk management practices for residential mortgage lending. The document requires authorized deposit-taking institutions to integrate residential mortgage risks into their risk appetite statements, establish robust management information systems, and align remuneration policies with prudent risk-taking. It further mandates sound loan origination criteria, rigorous serviceability assessments with appropriate buffers, and comprehensive oversight of broker relationships and portfolio performance.
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