Corporate watchdog ASIC has told major banks they need to do more to help borrowers in mortgage distress or risk facing legal action. The ASIC investigation found banks and non-bank lenders aren't doing enough to ease the pain and that many borrowers who had their repayments deferred fell back into arrears as soon as the hardship assistance ended.

Reporter: Peter Ryan, Senior Business CorrespondentFeatured: Kevin Naidoo, Commonwealth Bank customer; Joe Longo, ASIC chairman; Dr Domenique Meyrick, co-CEO, Financial Counselling Australia