CUA restricts broker sales

Credit Union Australia told brokers they must suspend sales of variable rate home loans for the lender from today, The Australian reported.

The CUA position is temporary, according to advice to brokers from CUA cited by the newspaper. Presumably mortgage brokers remain free to market fixed rate loans for the credit union.

CUA, the largest credit union, had a mortgage book of $5.7 billion at June 2007, equal to a quarter of all residential lending by credit unions.