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Borrowers don't care about DEFs: MFAA

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Australian Broker | 15 Jun 2011, 04:00 AM Agree 0
Australian homeowners are unconcerned with exit fees, the MFAA has claimed
  • countrybroker | 15 Jun 2011, 01:07 PM Agree 0
    i for once agree with everything Phil Naylor is saying. The borrowers really do not care even when they payout within the DERF period PROVIDING it is explained correctly and early in the process.
    Brokers also mus NOW consider haveing claw back recovery clauses in their brokerage contract and information documents, when you explain what the lenders do they are actually angry with the lender. I have the client initial the clause and discuss it with them, I have never had a "no I will Not sign" reaction.
    The Federal Goverment's actions with these bans are just badly thought out and ill considered.
  • Jim | 16 Jun 2011, 10:14 AM Agree 0
    Of course borrowers care about derfs and defs. They dont want to pay huge exit fees to line brokers pockets with their ridiculous 1.4% upfronts
  • Papery01 | 16 Jun 2011, 01:04 PM Agree 0
    Survey sample 1000 & I wonder how they were qualified. Borroewers dont care about DEFs or clawbacks until they are an issue. Most dont even know what IR they are paying.
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