When assessing a refinance or switch the licensee considers whether there are overall cost savings over the life of the loan after fees and any extended term, and the consumer's repayment history on the existing loan; where the new repayments are lower than the consumer has been meeting and the consumer is current, the refinance is likely to be suitable, while a consumer in difficulty on the existing loan needs a fuller assessment of whether the new product resolves the difficulty. ASIC's view is that the obligations should not trap mortgage prisoners in higher-cost loans where a cheaper loan with lower repayments is available. Licensees should periodically review their portfolio to consider whether their assessments are producing good outcomes (arrears, hardship applications, complaints, dispute resolution outcomes), and licensees that use automated decision systems should ensure the systems are designed to meet the obligations, are tested, and are reviewed against outcomes, with the rules and assumptions documented.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.