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MFAA slams 'ill-conceived' exit fee ban

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Australian Broker | 17 Feb 2011, 07:30 AM Agree 0
The MFAA has spoken out on draft regulations banning exit fees, claiming it sounds the death knell for non-banks and competition
  • Michael Johnsen, Johnsen Walker Financial Services | 17 Feb 2011, 02:21 PM Agree 0
    Ban LMI charges on every refinance, that will actually create competition and save money. The NSW Government does not charge for already stamped mortgages, why should LMI be any different? Its a con.
  • Martin Rollins... Mortgage Planning Institute of A | 17 Feb 2011, 02:37 PM Agree 0
    Phil is 100% correct.

    The only competition that will come from this poorly executed piece of marketing will be the potential to limit competition between Banks and Credit Unions...... by my reckoning that's just not competition and quite simply reminds me of the film Groundhog Day.

    Removing a DEF for the likes of either RESIMAC or ADVANTEDGE would kill 'Off balance sheet lending'.

    And the simple transmission of that is, no more non-bank lending.... not to mention the risks to the Australian securitisation market.

    The NCCP as far as I am concerned is not a weapon to limit competition; if it is then maybe people should be honest and let us all in on the game, then at least mortgage-managers and alike can make executive decisions as to whether or not they want to continue in this industry.

  • Alistair McCreath | 17 Feb 2011, 03:47 PM Agree 0
    Don't blame me I did not vote labour
  • Positive Broker | 17 Feb 2011, 05:30 PM Agree 0
    Let's hope the message gets through to government. Deferred Establishment Fees are just that. If the lender can't "defer" them they will charge them up front. It's not hard to understand but obviously a bit tricky for the pollies! This will only increase upfront costs and maker it harder for all lenders excluding the majors to compete.
  • Damo | 17 Feb 2011, 11:16 PM Agree 0
    I didn't vote for them either, and don’t really comprehend why people ever do , given their appalling history managing finances or anything else that requires the slightest element of common sense.

    It will be interesting to see if these buffoons in Canberra take any notice of the feedback that our industry bodies are giving them, if they don’t the MFAA, FBAA may as well just shut up shop along with the majority of non bank lenders.

    This government is like the Victorian John Cain / Joan Kirner government, experts at turning a prosperous palace into a basket case.

    Bring on the next election, so Liberal can fix the carnage that is left behind by Gillard, Swan & Co.
  • Vickers1954 | 18 Feb 2011, 10:00 AM Agree 0
    Just goes to show how out of touch the govt are and are clutching at straws to gain some popularity (back)
  • Spinner | 24 Feb 2011, 10:57 PM Agree 0
    Why did the industry body not lobby for the right outcome. fees of $500+ are for a voice not a donation
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