Commonwealth has possibly broken banking rules by buying back stressed loans – NEWS.com.au

Commonwealth Bank has been buying back stressed mortgages from its securitisation trusts during the coronavirus pandemic, possibly breaching banking standards. CBA from March to July bought back about $80 million worth of stressed home loans from securitisation trusts, which are residential mortgage-backed bonds usually sold on to investors, according to The Australian.
The concept behind selling on stressed loans in the form of a collective mortgage-backed security is to remove the risk from the…

Click here to view the original article.