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Do you think ASIC understands the mortgage broking industry?

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Australian Broker | 30 Nov 2015, 06:32 AM Agree 0
Australian Broker is running a new online poll, asking brokers whether they think ASIC understands the mortgage broking industry, or whether there is a disconnect?
  • Barb | 25 Nov 2015, 08:54 AM Agree 0
    No I feel they have jumped the gun it is very frustrating especially for serious investors who's lending portfolio has been sizeable reduce to all this new changes.

    Welcome back to old lending fashion lending from the eighties.
    Did we not deregulate banks in the eighties so the banks could run as a business?

    We are now back in the same boat.
  • Grahame | 25 Nov 2015, 09:06 AM Agree 0
    In fairness to ASIC they have tried to do their best but have been saddled with too much police work. Originally they were to control corporations because the states could not manage a uniform companies act which was never uniform.

    I think another body simular to the ASAB with representatives from the MFAA and FBAA.

    You need people who have worked in the industry and understand the industry.

    Also the education level needs to be lifted. There are still a lot of cowboys out there talking garbage and bending the rules.

    The next property recession will see a lot of suffering amongst home owners and investors. That is when the banks will pay more attention to brokers.
  • Broker | 25 Nov 2015, 10:38 AM Agree 0
    I think it would be fair to say that based on recent amateurish commentary coming out of ASIC of late, that they are fairly clueless on many aspects of the mortgage industry.

    Brokers are essentially paid on performance , there would be many empty desks at ASIC if the same remuneration structure applied there!
  • Dave Robinson | 25 Nov 2015, 12:11 PM Agree 0
    As a general comment, I think ASIC has little knowledge on how a broker works day to day, how an aggregator fits into the mix and the role that a lender plays within in these parameters. I think the big question is do they want to know? Limited resources and a need to constantly justify themselves has lead to this shoot first (and no they don't ask questions after that they just move on) mentality. Rock and hard place is where they find themselves and without the tools to fight their way out it's easier to stay where you are picking the low hanging fruit. The classic example is CBA look at what has being going on with them for over a decade now, the bottom line is ASIC doesn't want to take on the 100 pound gorilla and again another announcement today of where they are refunding millions to customers. It's pretty simple to see what CBA have done and it has cost people 10's of millions of dollars yet nadda..but I digress. Sorry the simple answer is no I don't think ASIC has any REAL understanding of what a broker does.
  • PeterT | 27 Nov 2015, 09:42 AM Agree 0
    The regulations are brokers are crazy. We are information gathers we pass that information onto the lender and the lender decides if the client gets the loan or not. ASIC has stuffed it up completely, there should be no legal responsibility placed on brokers if the broker fails to do what the lender wants the Lender will no longer use the broker. It's called a free market approach.
  • Neil | 30 Nov 2015, 08:53 AM Agree 0
    Brokers must verify borrowers living and discretionary expenses? Is this a further advance toward the nanny-state? What next? Brokers to perform an annual review to ensure the borrowers haven't acquired more unsecured debt placing themselves at risk? Ultimately, who is responsible for the borrowers decision to accept further debt? What nonsense. Leave us alone ASIC. As a profession we work quite well, and have for many years. Why the witch-hunt? Take a good, hard look at the banks and lenders.
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