Thanks Red John,IMO I'm not sure if Domacom is part of the...

Thanks Red John,

IMO I'm not sure if Domacom is part of the solution or will get caught up in the problem. Its NOT Domacom that creates the Lending Rules, its whichever one of the Big 4 Banks they are piloting with. Without Guarantees I would think the only other solution would be a low LVR but you hit the problem that even at a 40% LVR any decline in property values will trigger that. This would then effectively require a top of cash ( margin call), increase in security etc. IMO all very problematic for a lend to Multi disparate parties with an in theory LRB.

It seems to me that LRB is a bit of a Furphy and IMO the Domacom Trust Structure may not overcome the Banks credit policy which is continually being tempered by APRA and Basel Guidelines.

IMO we really have zilch in detail from Domacom or the Pilot Bank, assumably we will get some detail shortly. Might be better able to assess post that. Personally IMO I dont think the barriers to entry are that great, I would expect that any of the Major Banks and some minors would already have the capability and permissions to replicate the products or could obtain variations in a short space of time if they chose to compete in the same market place.