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ING announces new upfront commission structure

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Australian Broker | 24 Nov 2015, 08:52 AM Agree 0
A non-major lender has announced a new and simplified upfront commission model
  • Brado | 24 Nov 2015, 09:20 AM Agree 0
    This is dead set ridiculous... Fair enough put up your rates on loans over 80% LVR if you don't want them, but cutting commission as well... No way.

    ING I will not support you and will not be sending loans your way, no matter what the LVR is. This kind of commission structure is definitely a 'conflict of interest' measure...
  • NQ Broker | 24 Nov 2015, 09:29 AM Agree 0
    Whilst the commission changes are positive for brokers, we need to be mindful of how these changes will be perceived by the ever present watchdogs just looking for an excuse to sink the boot in to Brokers.

    It also beggars belief that in this day and age a lender like ING can just pull all construction lending. A major step backwards in my books. What happens to existing clients that want to build other than being forced to pack up and move.
  • Broker | 24 Nov 2015, 10:04 AM Agree 0
    So what exactly is the new model?
  • Long time supporter | 24 Nov 2015, 10:06 AM Agree 0
    ING is getting ridiculous. No LOC (which was the best in the market). Now no construction loan.this means that I am no longer referring Land and Construction investment clients to them. Its costing them millions in sales. I was my aggregators largest referrer to ING, and have been throughout my 20 year tenure as a broker. Dumbing down their product offering is just dumb.Alongside increased rates for investors my deals are now going to a very competitive rival who smashes them on rate.At the end of the day my loyalty has to be in the clients interest not ING and thus they lose all my Investment loans.
  • marty | 24 Nov 2015, 10:06 AM Agree 0
    Next we see specials on 90% loans.
  • Mikal Howard | 24 Nov 2015, 10:58 AM Agree 0
    This is a massive "conflict of interest" for brokers. When you change the commission structure that could sway a broker to send clients a certain way purely because they get a higher commission for doing so is ethically and morally wrong. I am a mortgage broker, not a commissions broker.

    Commissions should all be the same with all lenders. That way, only the product is what is on show and if the product is not competitive then the broker won't use it in comparisons. Simple as that.

    This is very wrong and I am reconsidering even using ING now. I don't chase commissions ever.
  • Dan | 24 Nov 2015, 11:15 AM Agree 0
    I cannot understand why the aggregators would agree with this? Would they be happy for other lenders to go down the same path with commission structure? I wouldn't be.

    The regulators will surely jump all over this in any industry review and rightly so. Why give them more ammo? (if there was much there in the first place)
  • Broker | 24 Nov 2015, 11:43 AM Agree 0
    Agree 100% with Mikal and Dean.

    Just collude and fix all the bloody commission levels, the lenders collude on everything else so why not commissions too?

    The cynic in me says that this is a deliberate strategy by a lender ( or will that be lenders) to give ASIC some ammunition when they conduct their next unnecessary witch-hunt into honest working brokers and the fair income levels that we earn for doing a fantastic job for our clients.
  • marty | 24 Nov 2015, 12:09 PM Agree 0
    ANZ have been doing it for years?
  • Broker | 24 Nov 2015, 12:28 PM Agree 0
    The end game is that the lenders will end up paying less, in line with the primary objective of the ASIC enquiry.
  • Dave Robinson | 24 Nov 2015, 01:12 PM Agree 0
    Come on people banks are businesses and they (just like you) will change their "ideal client" parameters etc. It's up to you who you choose to send business too and I know venting helps but do you really need to vent here. We need to get away from the handle of whingers, things change sometimes our way sometimes not, it should all just roll off you as you move to the new lender.
  • Way out west | 24 Nov 2015, 02:05 PM Agree 0
    Another example of ING being away with the pixies. All their insightful comments are around whats good for ING.
  • JB | 24 Nov 2015, 03:29 PM Agree 0
    As a previously long term ING supporter, in the past 2 years we've seen them: bin the REF policy, abolish LOC's, and construction. They always were the vanilla deal bank but reducing comms on above 80% is the final straw. This policy will see them shrink their their small market share significantly. Within a year or two, they will be forced to reconsider.
  • Nope, no detail | 24 Nov 2015, 10:12 PM Agree 0
    Mark, brokers are your customers.

    Without occupancy cost, staff, super, workers comp, holidays, sick leave, stress leave, travel allowances etc, just be fair. Reflect the true value of a loan introduced to ING please.

    If your going to muddy the waters, which this article suggests... Just disappointing.
  • SEQ BROKER | 25 Nov 2015, 09:11 AM Agree 0
    Using commissions as a tool to drive business is dangerous. I like ING very much, they offer a complete banking system and previously with the LOC I was able to setup really effective mortgage reduction strategies with this lender. Now I will consider finding someone else similar to ING because I dont want to get rolled up into whatever investigations this could cause. Really I dont care if the commission is higher on vanilla/ lower risk lending - I wont be trying to put a square peg in a round hole just because of a commission. I agree with a lot said here, a blind man riding by on a horse can see you should just fix comms at 0.65 and 0.2. Just use rates to control your intake.
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