EXPLANATORY STATEMENT
STATUTORY RULES 1985 NO. 112
Subject : HOUSING LOANS INSURANCE ACT 1965
HOUSING LOANS INSURANCE REGULATIONS (AMENDMENT)
Issued by Authority of the Minister for Housing and Construction
The Housing Loans Insurance Act 1965 (the Act) provides for the establishment of the Housing Loans Insurance Corporation (the Corporation) and details the powers and duties of the Corporation and its staffing, finance and reporting.
Sub-section 47(1) of the Act provides that the Governor-General may make Regulations, not inconsistent with the Act, prescribing all matters which are required or permitted to be prescribed or which are necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Section 42 of the Act provides for contracts of insurance to be assigned in such manner as is prescribed where a mortgage is transferred or sold to another party.
Schedule 2 to the Housing Loans Insurance Regulations details the form of assignment. Under the previous prescribed form, a memorandum of assignment listed the name and address of both the assigner and the assignee, the number of each assigned contract and the full name and address of both the borrower and the lender.
To simplify the form of reporting assignments, the new Regulations require that the Corporation insurance contract number only be listed on the memorandum of assignment. Each of the Corporation insurance contracts has a unique number which it is considered will provide sufficient identification of cases for the protection of all parties.
The amendment to the form of assignment was considered
desirable to enable the Corporation to administer efficiently the heavy volume of assignments that could result from development of the secondary mortgage market in Australia.
Details of the Regulations are as follows:
Regulation 1 provides that the Regulations come into operation on 15 June 1985, the date of commencement of other proposed amendments to the Act and Regulations.
Regulation 2 amends Schedule 2 to the Regulations to remove references to the names and addresses of the lender and the borrower.
Authority: Section 47 of the Housing Loans Insurance Act