Document ID: chunk:federal_register_of_legislation:F2024L01053:reg:7:p3
Version: federal_register_of_legislation:F2024L01053
Segment Type: reg
Provision Reference: reg 7 (pt 3/3)
Character Range: 99313–100820

group, the life company or the private health insurer must also revalue any property offered as security for such loans when it becomes aware of a material change in the market value of property in an area or region.
 1.          Loans that are secured by residential properties but fail to meet the criteria detailed in paragraph 10 of this Attachment must be classified as other residential mortgages. Such loans may be reclassified as standard residential mortgages where the borrowers have met their contractual loan repayments to the general insurer, Level 2 insurance group, life company or the private health insurer continuously over the previous 36 months.
 2.          LMI refers to lenders mortgage insurance. '>40% LMI' refers to mortgages where insurance cover has been obtained for all realised losses up to at least 40 per cent of the higher of the original loan amount and outstanding loan amount if higher than the original loan amount. Such insurance must be with a lenders mortgage insurer that is regulated by APRA.

[1] This includes controlled entities which provide a financing role to the insurance business, insurance intermediaries and service companies.
[2] This includes controlled entities that provide a financing role to the insurance business, insurance intermediaries and service companies.
[3] However, any entity specified in subparagraphs (a), (b), (c) and (d) that is not material may be consolidated.
[4] 'FSR' refers to the Financial Strength Rating issued by AM Best.