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Bring it on, says broker association

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Australian Broker | 17 Nov 2015, 08:00 AM Agree 0
The FBAA has welcomed the latest ASIC review, which will investigate mortgage brokers in regards to interest-only lending
  • GC | 17 Nov 2015, 09:54 AM Agree 0
    What is Michael Saadat and ASIC, in general trying to prove? What does he really have against I/O loans? Does Mr Saadat think he knows more than the brokers? Does he actually understand that I/O loans actually decrease borrowing capacity? Does he understand that there are multiple reasons for structuring finances with I/O loans?

    Maybe he has been burnt by a bad broker. What ever the issue is, its a pity that we have a Lawyer instead of a finance professional overseeing compliance in the finance industry and seemingly pushing his PERSONAL views.

    My real concern is that ASIC think they should have the power to tell us how we should be structuring our finances. If that is the case we are entering dangerous territory. The last I knew we apparently have the freedom and choice to make our own financial decisions - without Govt interventions- as we have in the past. Do we now have ASIC thinking they are superior? Seems so.......
  • Broker | 17 Nov 2015, 10:24 AM Agree 0
    Is this interest only witch-hunt coming from the same peanut that recently suggested that brokers write interest only to get paid more trail – wow like imagine earning an extra 3% on your annual trail each year , early retirement here I come!

    I try to have some form of respect and understanding for the likes of ASIC and APRA’s decisions on what to monitor in the lending space – but they make it impossible as the majority of their commentary is stupider than their previous thought bubble.

  • John Sanders | 17 Nov 2015, 02:48 PM Agree 0
    I agree with you GC perhaps the head honchos at ASIC and APRA should do their Cert 4 in Finance so they at least have some basic understanding of what it is they are investigating!

    You're 100% correct when you say IO loans are actually harder to get. I have noticed a new attitude from assessors who are scrutinising investment loans far more.

    Some of the declines I have had of late are nothing short of absurd!

    Does APRA actually think we would be trying persuade our clients to go down this path?
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