Dr. Martha O'Hagan-Luff:

It is a balancing act between looking after existing borrowers and future borrowers. Regulation was extremely poor and banks extended lending to those they should not have, but people did also sign up to contracts. There are behavioural finance aspects when people see their neighbours doing something and then they think that it is okay. People signed up to mortgages that they should not have and banks gave mortgages they should not have. It is not an easy decision between looking after people who have horrendous mortgages they wish they had never signed up to versus the rules for new borrowers and the rates that they will get. I do not know if I have answered the Senator's question correctly.