Minister of Human Settlements Mmamoloko Kubayi addressed criticisms of proposed changes to South Africa’s home loan disclosure laws, defending the government’s focus on transparency and fairness in bank lending practices. Critics argued that banks are profit-driven and there is no evidence of racially biased lending, attributing housing issues to government mismanagement. Kubayi countered this, asserting that discriminatory practices can persist within profit-driven institutions, citing ESSA Bank & Trust in the US, which settled a $3 million redlining case in 2023.

Kubayi clarified that the government does not intend to force banks to justify loan rejections, dismissing this claim as a ‘strawman.’ Instead, she explained that the Home Loan and Mortgage Disclosure Act (HLAMDA), in effect since 2000, aims to increase transparency by requiring financial institutions to disclose lending data. This information, which includes the race, gender, and geographic location of borrowers, is intended to promote fairer lending practices and identify potential discriminatory patterns.

The minister expressed concern over poor compliance with the Act and outlined potential amendments to enhance enforcement. These changes include increasing penalties for noncompliance, empowering the Office of Disclosure to investigate complaints, and requiring stricter auditing of returns to improve data quality.

Kubayi emphasised the need for collaboration among stakeholders to address disparities in the housing market and foster an inclusive, nonracial society where homeownership is accessible to all South Africans. She reiterated that transparency and compliance are key to creating a fairer property market.