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Australian mortgage reform 'pale reflection' of UK's

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Australian Broker | 27 Feb 2014, 08:34 AM Agree 0
Australia should take heed of the UK's mortgage reforms, Digital Finance Analytics principal Martin North said.
  • Again... | 27 Feb 2014, 10:40 AM Agree 0
    Given the Australian financial system was one of the few - if only - to survive 2007; it then seems appropriate that we change it to match all the countries whose systems didn't work?
    And yes that is irony...

    To sum up his article; "let's take lessons from the losers".
  • TomTom | 27 Feb 2014, 11:45 AM Agree 0
    I like the idea but I can see the commissions from banks dropping as a result. This industry is already painful enough to operate in.
  • Greg of Perth | 27 Feb 2014, 12:11 PM Agree 0
    Lenders in Australia approve all Housing loan Applications, I don't know of any that abrogate their responsibilities to third parties.
    In the USA prior to the GFC (ironically started there) lenders the likes of IndyMac Bank did just that. Allowed Brokers to not only approve but document those approvals and then Fund the loan only later passing the file to the Lender.
    As a result, IndyMac no longer exists....Lessons to be learned here --clearly Yes?
  • Not So Young Broker | 27 Feb 2014, 02:05 PM Agree 0
    Again.. Agree
  • Broker | 28 Feb 2014, 09:20 AM Agree 0
    Mr North has a well known dislike of brokers. I remember back in about 2007 when he worked for one of the banking consultants he was constantly telling lenders brokers were getting paid too much and that they should look to the UK to see how the brokers were getting paid over there. I am not sure if Mr North is English but he clearly thinks everything they do is a better way than here. Curious when English lenders are no where near as profitable as ours and never have been. Why you would listen to him as a banker is beyond me.
  • CharlieX | 21 Jan 2015, 12:47 AM Agree 0
    it make sense that the lender, who is actually the one that has to hand out the money, needs to check/verify the works of the broker. same as in America.

    Australia's mortgage industry is not comparable to America's mortgage industry. simply that America is free/capitalist market, Australia is a controlled/socialist market.

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