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Consumer claims against brokers on the rise, says law firm

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Julia Corderoy | 05 Jun 2015, 08:00 AM Agree 0
A specialist law firm says claims made against mortgage brokers are on the rise due to increasing consumer awareness, so how can brokers ensure they don't get into trouble?
  • Broker | 05 Jun 2015, 09:15 AM Agree 0
    Wow, I think I may have to consider buying a Dictaphone!!
  • Steve McClure | 05 Jun 2015, 10:34 AM Agree 0
    Simply, be clear on your task, i.e. to procure a loan that is not unsuitable for the needs of your client - and be able to demonstrate it if tested. Sure, there are other procedural obligations, but lets not complicate it with misassumptions about it always having to be the lowest rate on the earth.
  • New Age... | 05 Jun 2015, 11:44 AM Agree 0
    Lawyers see this as the next cash cow...
    Thanks to NCCP being all shades of grey, rather than black & white. And regulators, who's only answer is always "seek legal opinion" even for the smallest questions of interpretation - which would be more expensive than what is earnt from the deal.
  • Maria Rigoni | 06 Jun 2015, 01:12 AM Agree 0
    Let's be clear - brokers do not have to suggest or recommend the best product in the market place under NCCP they only need to provide advice for "not unsuitable" loan products.
    Any sub-contractor broker via an aggregator is independent to any lender as the remuneration "commission" is paid to the aggregator not the sub-contractor broker. The sub-contractor broker is paid by the aggregator not the lender.
    The broker is never the end decision maker in a potential borrower accepting a potential lender offer.
    Now if we are talking about Mortgage Managers who are often referred to as a mortgage broker well then that is a different scenario. They are tied to the lender via a direct "commission" agreement.
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