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Brokers have nothing to hide, says Mortgage Choice

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Australian Broker | 19 Nov 2015, 08:00 AM Agree 0
The chief executive of a major mortgage franchise has welcomed ASIC’s commission probe, saying the industry has “nothing to hide”
  • jack the hammer | 19 Nov 2015, 09:09 AM Agree 0
    You would think this bloke would be more concerned about the MOC share price that has halved since he has been in the chair rather then having an opinion on every second matter on AB.
  • Broker | 19 Nov 2015, 09:29 AM Agree 0
    Very refreshing to see some leadership in this industry for a change.

    Maybe, just maybe, if the FBAA, MFAA and a few leading Aggregators sat down with these financial geniuses at ASIC and spent as long as it takes, to explain in explicit detail, just how brokers are paid from each lender, then there would not even be a need for a tax funder paid, waste of money enquiry into the fact that we are paid fairly for the job that we do.

    I noted that this enquiry is scheduled for late 2016 – seriously is it that big of a job?!

    One can only think that the big 2,3 or 4 are driving a push for commissions to be abolished altogether , and for the industry to become fee for service , now that’s progress!
  • Worried | 19 Nov 2015, 10:02 AM Agree 0
    As 10+ year Mortgage Broker, I have seen many changes mostly for the good over this time. As I am also a financial planner I can also say the same thing on the planning side... Wait for it... BUT the recent LIF 'inquisition' that was completed on the life industry should have all brokers and aggregators on their toes.

    Word of warning, don't rely on the MFAA or FBAA, banks or any other industry body - just ask a life writer about how they were stitched up by the so call fin planning bodies and life companies. Lifies were asked to trust the life companies and industry bodies to sort out the government reforms - so most did and the outcome was a 40-50% drop in commission, in effect the government has told the industry what they are allowed to pay even thought the government's own report clearly stated they knew that the reduction in comms would make placing risk business uneconomical - yes they acknowledge that the reduction in comms would make writing risk not profitable in most cases! They acknowledge this and still completed changes!

    In short do not rely on the banks to help us - they will tell us one thing and say something else behind closed doors. The outcome will be a government mandated reduction in commission structure which they will take with open arms just like the life companies (i.e. big banks) did. Come on aggregators, it is totally up to you!
  • Joe Broker | 19 Nov 2015, 11:37 AM Agree 0
    Agree with "Worried" and "Broker" - the silence behind the big banks' agenda is deafening!!
  • Dave Robinson | 19 Nov 2015, 04:06 PM Agree 0
    C'mon guys we can't expect the banks to come to our aid after all given the choice they would rather we didn't exist. They do business with us due to the volumes we provide not because you are nice guys. One day we as brokers will learn that united we have a better chance, why do you think the banks segment us? Why do you think CBA has publicly stated that their preferred channel's are their own including Aussie which they own, why do you think Westpac (and all it's different brand names) keep saying the same thing about us being partners but don't actually do anything about following it through.

    Divided is how they want us and will keep doing what they are doing, we need to start being a little smarter. Been doing this now for over 20 years, yes you could say jaded although I would prefer the term "realistic". :-)
  • marty | 20 Nov 2015, 09:19 AM Agree 0
    Agree we need a union not an industry body that can disrupt the banks if need be. Yeah ok I'm dreaming.
  • Broker | 20 Nov 2015, 09:31 AM Agree 0
    A union to deal with the first sign of their pesky behaviour by boycotting them would be a super outcome, I'm dreaming I know!

    To this day I don't think Westpac has ever recovered from their shabby treatment..
  • Papery | 20 Nov 2015, 11:26 AM Agree 0
    Not only should the consumer be aware of what we are remunerated but they should also have some understanding of how much work we have to do for it & remain under the threat of a clawback for 2 years.

    Let's tell the whole story not just part of it.
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