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Royal Commission report released

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Rebecca Pike | 04 Feb 2019, 03:29 PM Agree 0
The report contains recommendations from commissioner Hayne. Here's what we know so far.
  • Moofie | 04 Feb 2019, 04:40 PM Agree 1
    Big business wins - no surprises here. Australian borrowers lose.
  • Angry broker | 04 Feb 2019, 04:40 PM Agree 1
    To all you idiots still using CBA, you got what you deserved. Thanks Mr Hayne, I can now put my life and business on hold for another 2 years. Thanks for recommending to ruin my business and life.
  • JohnDaniel | 04 Feb 2019, 04:42 PM Agree 1
    Brokers are screwed, the industry is over
    Good luck getting borrowers to pay for something they can get for free via the bank direct
    I’m out, over and out!
  • | 04 Feb 2019, 04:45 PM Agree 1
    Hayne, you're either a puppet or an imbecile, or both. You've just signed off on screwing our whole country. Because you've got one foot in the grave, you wont live longer enough to see the true fallout. Congratulations a--wipe!
    • Hans | 05 Feb 2019, 10:00 AM Agree 1
      Do you not think the broking industry has played any role at all in this?
  • gonski | 04 Feb 2019, 04:45 PM Agree 0
    all finished now. we are all ruined. fuck
    • OMG | 04 Feb 2019, 05:18 PM Agree 0
      they are going to butcher us
  • L N Finance | 04 Feb 2019, 04:46 PM Agree 1
    So a watchdog to watch the watchdogs? Is Hayne serious? that is just the most ridiculous recommendation I've heard, he is basically saying you cant rust APRA and ASIC and we need a third umpire. How about fixing up APRA and ASIC to do their jobs properly in the first place!

    If the ALP bring all recommendation into being then they are effectively in the pocket of the big banks pure and simple!
  • BerwickBroker | 04 Feb 2019, 04:47 PM Agree 0
    Hope the common sense will prevail. Aggregators now please stand up and fight for the industry to defeat ignorance!
  • | 04 Feb 2019, 04:47 PM Agree 1
    Trying to work out how this helps the consumer.

    They either pay me a $2000 fee or walk down the road to "bank x" and look over "bank x's" products and go with one (at "no cost") when "bank a, b and c" suit them them better and have lower interest rates but they don't know about it or cant be bothered running around working it all out.

    Surely common sense will prevail from govt....
    • Philly Slim | 05 Feb 2019, 10:11 AM Agree 0
      But that is your value proposition. Pay me a [$2k] fee and I will find you the best deal for you that will save you [$10k] over the term of your mortgage.

      All brokers should have a financial advisor licence and the good ones will be able to stay in the industry.
    • Dumb broker | 07 Feb 2019, 02:30 PM Agree 0
      Philly Slim

      What are you talking about ? Whats your value proposition when you can have a site that compares all the lender deals anyway. No one is paying you anything for you to get them a loan except the desperate person looking at a nonconforming loan. Banks have cleaned up in this. Think about what you earn. Lets take trail out of it because at some stage trail will cease to exist when that loan refinances or the original writer sells or leaves brokering. At 2k a loan prep fee . You need 75 loans a year to make a decent living . And if your expenses are high you are in real trouble. Eg office rents, car etc ......the muppet Hayne and Labors witch hunt has just killed the industry. Aggregators , FBAA , MFAA can sugar coat it all they like saying they will increase up fronts etc... I call bullshit. They can just as quickly reduce the up fronts . They have us by the balls. A best interests duty will also stop the churn. It will be be very hard for a broker to refinance a client . And finally how is it in the best interest of the applicant that they now need to pay a fee that will eat into any savings they would have if they refinanced? This whole RC played straight into the big banks hands and just fkd 25000 people and fkd the average Australian looking for a loan
  • David | 04 Feb 2019, 04:48 PM Agree 1
    Totally expected after listening to the bias displayed by Hayne and Counsels Assisting during the last round of hearings. We now need to get really active in lobbying MPs and Senators so that they are in no doubt as to the consequences of these recommendations. Contraction of competition back to pretty much the big 4. Marginalisation of smaller lenders and increase in interest rates as the big banks claw back margin to what it was before brokers - 5%. Higher rates for all.
    Great result Hayne, Orr and co.
  • 20 years broking | 04 Feb 2019, 04:48 PM Agree 0
    This is the worst news for the Australian Economy. Sell your houses. Sell everything. The credit crunch hasn't even started as yet.
    • bankrupt broker | 04 Feb 2019, 05:09 PM Agree 0
      I't just started brother
  • peeved off broker | 04 Feb 2019, 04:49 PM Agree 1
    Thanks for ruining my industry and livelihood Mr Hayne !
    All borrowers will be worse off under this model....... for improved customer outcomes my backside.
  • Simply Amazed | 04 Feb 2019, 04:50 PM Agree 0
    You have to make CBA part of your suite, otherwise you end up having to churn customers that are current CBA borrowers and that is plainly stupid and unethical!
    • My Comyn | 05 Feb 2019, 02:36 PM Agree 0
      churn away
  • PoorConsumerOutcomes | 04 Feb 2019, 04:51 PM Agree 1
    Is the customer reaping the benefit of the lower 'cost' by a lender not paying commissions, whether this be upfront or trail. poor consumer outcome if this is the case.
    How does this now affect dual-app / commercial borrowing - one gets paid & the other is a direct charge?

    What a round-table we've gone - banks abolished from charging exit fees, clawback introduced to compensate putting the onus of commission to the broker, albeit of any causation by lender (staff ineptitude, poor branch service and similar) & now customers will have to pay additional in rate and upfront charge
  • Broker | 04 Feb 2019, 04:51 PM Agree 1
    No doubt cba and westpac will lead the cartel and roll this out next week...
  • Another Angry Broker | 04 Feb 2019, 04:53 PM Agree 1
    The Royal commission in to Banking misconduct has basically screwed the customer even more that they were prior to the commission.

    1. It has recommended an increase in the Banks Profit margins with the removal of trail and commissions
    2. Bank Lenders now get paid in excess of $200,000 (again rewarded the supposed staff who caused the issues in the first place with a 200% pay rise)
    3. The client either deals direct with the bank or pays a fee
    4. Thee challenger brands without the Branch presence looses market share, eventually gets bought by one of the big 4 (think Bankwest in 2009/2010)
    5. To top it off we have all lost 10% plus of our property value with Banking scrutiny being one of major drivers in the recent down turn of property sales.

    So in a nut shell, The Big 4 congratulations, Mortgage Brokers start looking for new streams of revenue and Borrowers welcome back to 1980's
    • David P | 04 Feb 2019, 05:07 PM Agree 0
      Perfect summary.
    • bankrupt Broker | 04 Feb 2019, 05:13 PM Agree 1
      Didn't this I would see a return to 18% interest rates in my time again. Haine just shattered that notion.
    • in the know | 04 Feb 2019, 05:18 PM Agree 1
      The royal commission was a sham to start with,

      The big banks asked for it, Why? simply put to draw a line in the sand in 2018. The royal commission has worked in the Big 4 Banks favour by simply not allowing the real crimes committed by the Big 4 (2012 - 2015) to be brought to public light.

      The big 4 were settling 10's of millions in dodgy loans during up to during 2012 - 2015 Bank staff, Management and right up to the state level were 100% across what was going on. This was not done via the broker channel this was front line staff who committed these acts and the royal commission did not even go there.
    • Philly Slim | 05 Feb 2019, 10:14 AM Agree 0
      When you think about it the only reason the big 4 banks allowed the broking industry to develop in the first place was to distance them from any ethical issues in the supply chain and to give them something to cut adrift if the SHTF.

      The fan is now splattered and the broking industry is collateral damage.
  • Pfft | 04 Feb 2019, 04:54 PM Agree 0
    Totally destroy an industry to prevent “potential” conflicts. What an absolute farce. This will decimate the finance industry in this country and make the big 4 completely dominant. What a complete fool this commissioner is. No idea at all how the industry or the economy works.
  • qldbroker | 04 Feb 2019, 04:55 PM Agree 1
    Well that’s my career over before it started. I hope the these bank ceos enjoy there $8M plus salaries while the small finance businesses of Australia are near over.
  • A normal person | 04 Feb 2019, 04:55 PM Agree 1
    Hi

    It looks every thing was scripted even before Royal Started any hearing and the events gone exactly same way that way it was pre planned by big 4 banks. Even what ever borrowers wants, what is good for general public . These big 4 and others does not care at all for public. It looks every thing was very well planned and royal commission has been used to put a stamp on what big 4 wanted in Mortgage broking industry...

    very said
  • | 04 Feb 2019, 04:56 PM Agree 1
    Nothing is happening to anyone. But the broker who provides the customer with fee free choice is wiped out
    • Jonesey | 04 Feb 2019, 08:40 PM Agree 1
      haaaahaaaaahaaaaa.....go back to the dark ages you ignorant twat
  • George S | 04 Feb 2019, 04:58 PM Agree 1
    Haynes comments specifically regarding comments around trail being a fee for nothing just goes to show that all that time and money spent investigating broker remuneration has been a complete waste. He obviously has not grasped what work is done by the broker AFTER the loan has settled. i like most brokers spend probably half our month maintaining customers that have queries and requests regarding the current loans they have already settled.

    Furthermore he seems to be oblivious to the impact on the Australian borrower but how can you possibly expect a man at the end of his financial career to understand what adults at the beginning or middle of their financial career are going though in order to obtain a loan.

    The finding seem to by completely ignorant , incompetent or corrupt in nature and it seems Hayne is the one that needs a watchdog, not ASIC.
    • Buddo | 04 Feb 2019, 05:06 PM Agree 0
      Plus trail is a deferred upfront intended to prevent brokers from churning loans. Anyone after an increase in future will be sent to the branch or refinanced.
  • Shortly to be unemployed | 04 Feb 2019, 04:58 PM Agree 1
    Borrowers have clearly stated that they will not pay a fee for service ..... good bye broker industry. CBA must be very happy.
  • Concerned | 04 Feb 2019, 04:59 PM Agree 1
    What a very very poor recomendation!
    Certainly helping big banks to put independent brokers out of work and reduce the competitiveness of the market.
  • Unhappy Broker | 04 Feb 2019, 05:01 PM Agree 0
    The Banks will not be able to keep up without Brokers.They will have to employ and they dont like doing that.Wait and see is all we can do.
  • JG | 04 Feb 2019, 05:03 PM Agree 1
    Broking is now dead and buried . Not one of us can survive on up fronts when everything has clawbacks. Time to close the doors and let the Banks have full reign as no customer is going to pay an upfront. No point in continuing to work in this industry as any incentive has been taken away. Just wasted 17 yrs of my life building up a business for some bastard to take it anyway in a blink of an eye. How do I now look to feed my family pay my debts. will the government compensate me for taking away my livelihood . You bet your bottom no they wont. have paid my taxes to this country and they just pushed a pineapple fair up my bottom.
    • GD | 04 Feb 2019, 05:25 PM Agree 0
      Couldn't have put it any better....
      They are worried about Clients being mistreated....fair enough.
      Who compensates us for us being cut off at the knees....
    • angry dave | 04 Feb 2019, 05:39 PM Agree 0
      they jammed us big time up the bottom
  • David P | 04 Feb 2019, 05:03 PM Agree 1
    More money in the pockets of the big banks at the end of the day.The politicians have killed the industry. Which customer will pay fee for a service? Both political parties are playing with the lives of 27000 people employed in the industry.
  • SA Broker | 04 Feb 2019, 05:04 PM Agree 1
    I want to see the evidence that shows this will be better for the consumer
    How can it benefit the client to pay anything compared to paying nothing.
    They were looking to uncover things that Banks have proven to be doing wrong in the past and he is killing an industry on the basis it could possibly have an impact on the client in the future, but no evidence of any issues previously.

    Suggesting we are anything like financial planners is comical
    Planners were taking commissions from the asset they were investing in most cases.
    We are not increasing the cost of the loan to clients, otherwise it would be more expensive to use a broker than a bank

    Will be interesting if Bill Shorten can explain to Broker clients that you can start paying and Banks will be the only winner.

    If this happens, the Royal commission could actually end up the best thing that has ever happened for the Banks

    Nice knowing you ING, ME, Adelaide Bank etc
    May as well shut your doors as well




  • JK Sydney | 04 Feb 2019, 05:04 PM Agree 0
    Guys relax a bit. Treasurer is saying they will assess upfront commissions.

    He says he is aware of the impact of competition. It won’t be abolished.
    • Really | 04 Feb 2019, 05:17 PM Agree 0
      Now that made me laugh, who do you think will win the election?
    • Reality Check | 04 Feb 2019, 06:10 PM Agree 0
      Without Trail, I wouldn't stay for just upfronts anyways. That makes it a transaction business, not a service business. Who would want $90 for doing a full application top-up. What about smaller states that don't have the volume of loans going through to support a transaction only business; such as Tassie, SA etc.. What about country towns with low loan sizes....they aren't going to pay a fee in the proportion they would need to, to even allow a broker to break even.
      It will go the same way as Financial Planning, where only the rich will seek advice; and the standard blue or white collar worker will get screwed, because they couldn't afford to seek advice.
  • Buddo | 04 Feb 2019, 05:04 PM Agree 0
    So, given trail is a 'delayed upfront' I'm guessing upfront paid by the banks will be substantially higher? AND, we can expect borrowers paying for service will mean no bank fees whatsoever, & reduced rates for all? Yeah, squadron of pigs cleared for takeoff.
    As usual, the brokers are the easy target in all of this.
  • A short-changed Broker | 04 Feb 2019, 05:09 PM Agree 0
    WOW. What ignorance. They have no idea about what we do! Clients initially came to us to avoid banks directly given they were always treated so poorly and as just a number.
    Clients won't have any choice and will have to go to a lender that can only offer one suite of products..
    The industry will die.
    Funnily, they will likely bring it back. They shoot now and aim later.

  • SEQ Broker | 04 Feb 2019, 05:13 PM Agree 0
    IF any Liberal politician wants the questions and answers to bring down Bill Shorten, please respond here. His agreement with 100% of the commission is in absolute denigration of blue collar workers he is supposed to represent.

  • Robyn Anderson | 04 Feb 2019, 05:13 PM Agree 0
    Thats' said it all - RIP small Banks, Mortgage Brokers, fair competition. I might as well pack my bags now.
  • Sydney Broker | 04 Feb 2019, 05:15 PM Agree 0
    Boycott CBA.
  • Former Third Party Exec | 04 Feb 2019, 05:15 PM Agree 0
    The apocalypse is here! Disappointing to see the industry end up here. Aggregators have not done enough to prevent this. We should all be looking hard at the aggregators and the money they take month on month from a brokers plate for what? They all jumped on the band wagon too late. All too worries about themselves - and is the fight now just about them and insulating their own pockets because this will hurt them too in the end. The industry has been too slow on preventative measures and consultation. I applaud the Peter White and Mike Felton for rolling up their sleeves - but it’s more than a 2 man fight. It’s too late to join the fight in the last round, the damage is done. For brokers, do your own research, look at what happened with the roll out of similar regulation in the financial advice space. It’s time to re-invent. But nobody can deny, it’s going to hurt. And with a plummeting housing market - it’s a perfect storm. Give hell to your aggregators, whilst they earn money from you, really make them earn it!
    • Who dis | 04 Feb 2019, 05:18 PM Agree 0
      Ah what about our great industry associations, seem to have been as effective as our aggregators.
  • Don Sinclair | 04 Feb 2019, 05:17 PM Agree 0
    Well its back to how I used to operate in the early nineties, charging the people who in most case couldn't afford it but didn't fit with their bank, so went and found someone who could help them and 3% was charged to these people, many court cases were the norm, as the Funders wouldn't pay the brokerage so it had to be paid by the customer who sometimes thought no I'm not paying that at all, so off to the Small Claims Court, used to make good money, but this was before the digital system came out.
    I say good luck to anyone of you that wish to stay???
    Think its time to change your jobs, the Big 4 will need more staff as all the people that used the Mortgage Brokers will have to annoy the Banks Branches, the small Funders will just shrivel up and be taken over by the Big 4, offering no competition to the unsuspecting customers.
    I had a client in 2006 ring me to see if I could do a better deal than his Bank, when I quoted the Application fee of Nil and no ongoing and the rate, I heard a penny drop, not only did I smash his Bank in Rate, but also with Up fronts and on goings. Worse was to come as his Bank was the one that I quoted the deal for. He was livid with his Bank for trying to rip him off and wondered why they quoted the top rate, I said they want to maximise their profit from him, had banked with the Bank for 20 yrs.
    Well that will return.
    Was amazing how this was to look at what the Banks had done wrong and the only thing the Royal Commission went for was the Mortgage Brokers.
  • qldbroker | 04 Feb 2019, 05:18 PM Agree 0
    Here’s hoping the government gains insight from burying an industry by the time these changes could potentially roll out. Read below

    He said from July 1, 2020, the government would ban trail commissions for new loans and limit the value of upfront fees to amount drawn down by borrowers and not the loan amount.
    While it will not require borrowers to pay the fees, there will be a review of the above changes in three years which will also look at whether the borrowers should pay the fees.

  • David | 04 Feb 2019, 05:20 PM Agree 0
    And how are brokers only doing a couple deals a month supposed to survive? After the loss of business from charging an upfront fee they’re going to survive on 20-24 sales a year at 2k a pop? No incentive for them to stay in the industry. Even the big players and going to only earn less than half (not counting trail). Why would they stay either.... ridiculous short sighted recommendation. Hopefully further discussion brings about common sense
  • A General person | 04 Feb 2019, 05:21 PM Agree 0
    Hi Everyone

    It looks current government is positive towards Brokers and labor is totally against. Let do the efforts favor of current political party in coming election. we have 60% Market share means we have a direct contact with good amount of voters. If we have done something for them in past, Ask a favor from them to vote in favor of current government

    If am sure we power to reach voters who can decide the fate of political party.

    Thanks
    • Anon | 05 Feb 2019, 09:10 AM Agree 1
      Libs are going to be smashed.
  • Martin | 04 Feb 2019, 05:25 PM Agree 0
    What an absolute joke. Wasted all that money to place the power back into the hands of the big 4 that caused the problem. The consumers have lost choice and financial empowerment with real experts in the their corner.

    Not to mention destroying so many hard working brokers worked hard to build.

    What a disaster for the consumer and small business owners of Australia.

    Disgrace!!!
  • Appalled broker! | 04 Feb 2019, 05:29 PM Agree 0
    I’d like to invite this moron to spend a week in our office to see that we DO provide on going service to our clients for the life of their loan. 80-90% of our days are current client maintenance. The service from brokers doesn’t stop as soon as a loan has settled. The service from banks on the hand does! Perhaps this idiot just had a bad personal experience with 1 dodgy broker so is doing the typical and stereotyping all of us.
    • salim | 04 Feb 2019, 05:40 PM Agree 0
      i have just got a client a $20 late payment fee refunded. took about 1 hour in total to email the bank and update the customer. i did that for free because of trail

      now i will have to just tell them to go to the bank
  • Cuckoo | 04 Feb 2019, 05:30 PM Agree 0
    Good luck to the 4 major lenders. They will prevail. The small timers will be gone in no time. This guy has ruined the young low income Australians even to dream of buying a house.
  • Hard working Broker | 04 Feb 2019, 05:39 PM Agree 0
    Haynes & Politicians have no understanding of our Industry & what value Brokers provide to customers seeking Home Loan Finance with choice of products to offer customers cheaper interest rates & better products than what the Big 4 offer.

    The consumer & brokers lose & once again the bank's win.

    Well done to the ignorant Royal Commission & Politicians for wrecking an Industry that actually provided consumer competition.

    The result of this could be that smaller lenders could disappear leaving a Cartel of the Big 4 especially if Upfronts are reviewed & banned in 3 years as per Haynes recommendations on top of the trails being banned.
  • Pete | 04 Feb 2019, 05:45 PM Agree 0
    So how does this benefit the consumer when every broker will be too cautious to let them know which bank is best for them as they will just march down the road once informed? Nothing that has been explained about our role has been given any credit here.
  • RIP Broker | 04 Feb 2019, 05:46 PM Agree 1
    Thanks Mr Hayne, you have just placed 10,000 Brokers in the unemployment queue plus all the 2nd tier lenders with no Branch presence and their support staff. There goes any competition in our industry.

    We need a call to Action Day and have 10,000 Brokers 2nd tier lenders all to visit out local Centrelink Office on the same date and at the same time and claim unemployment benefits. Drive a point home to these Politicians .. especially the Labor party who intimated they will implement all changes.

    No competition any more …… Big Banks will grow and so will their profit margins. Watch the number of 2nd tier lenders that will close (as they did when GFC hit).

    No more trail ….. well may as well stop all my marketing costs and save some money, no more annual reviews to ensure an applicants loan is still suitable for them, no need to follow up applicants with interest only terms maturing, no need to follow up maturing fixed interest rates …….

    Why aren't Politicians held as Accountable ?? This is a joke!!!!!!!
  • qldbroker | 04 Feb 2019, 05:50 PM Agree 0
    Lets just hope the a type of upfront commission is still paid by the lender, I just can’t see the reason to let hundreds of small businesses close up shop and let the banks continue to profit, it’s been working for years, why stop now, yes it does need some sort of changing but not to the extend of ruining the lives of small business operators.
    • Reality Check | 04 Feb 2019, 06:13 PM Agree 0
      Without trail, it isn't viable for the vast majority. Upfronts are fickle if the Banks suddenly tighten credit. A few large multi-businesses might survive, but 90% of Brokers will disappear, and so will the competition.
  • Reality! | 04 Feb 2019, 06:01 PM Agree 0
    A business who's Net Worth dropped to zero overnight, thanks to a few lawyers who don't understand the industry.
    Interesting that CBA were the main reason for which a Royal Commission was called; yet CBA got everything they wanted.
    Is there a stat dec signed, where those on the royal commission guarantee they will never accept a board position at a later date, or any other form of reward or renumeration in the future from any bank?
    Good luck to customers trying to get say a $30k top-up. No trail means no service ongoing. No after hours visits, no free call-outs etc etc .
    Clawback is still in. Unlimited waiting times for a discharge to be prepared is still in - all ignored, or not understood by an incompetent Royal Commission.
    in effect its like 56 Holden Plants closing, as 28,000 workers go to the wall; and small banks now have no distribution channel.
    After 30 years experience in helping people, I'll close my doors, and seek employment elsewhere, or go on the dole til retirement.
  • Love My Broker | 04 Feb 2019, 06:11 PM Agree 0
    Imagine how difficult the process will be to refinance from one lender to another lender. I lost a nerve getting the bank people to give the correct form and had to email and fax same documents so many times. Cannot imagine doing this without the help of a broker.
  • Christopher Pine | 04 Feb 2019, 06:19 PM Agree 0
    Australia just sank 👎🏻🇦🇺
  • VicBroker | 04 Feb 2019, 06:31 PM Agree 0
    Don't worry, it just says banks can't pay commissions, we'll just call it a levy. Governments do that all the time. Its not a Tax, its a levy. Problem solved!#screwed
  • What next | 04 Feb 2019, 06:33 PM Agree 0
    23 years a broker and I have seen the ridiculously high margins the banks charged customers on home loans when I started reduced to the current levels. We have dealt with non banks from time to time that offered good products to our customers until they were bought by banks but of course they now operate "autonomously". The banks have been allowed to do this and also buy out most of the aggregation groups who supposedly represent us. Why did the government allow this to happen. Now the final act to remove competition in the market place. Brokers were part of the solution not the problem. We obviously have had poor representation from the people who charge us for looking after our best interests. I have enjoyed saving a lot of people from the hungry hyenas that are the banks in this country. I have always had my customers best interest at heart. Perhaps this commissioner should have taken time out to compare the service a borrower receives from a bank compared to that they receive from a broker. So will the banks employ the Australians that now do the data entry for them at brokers offices? No, but a big employment boost in India. This Commissioner will be paid a large sum of money for what? Removing the protection of borrowers from the greedy banks.
  • Angry Office Manager | 04 Feb 2019, 07:15 PM Agree 0
    All Brokers in Australia need to go on "strike" for a set period and see how the banks cope.
  • Well Planned by banks | 04 Feb 2019, 07:34 PM Agree 0
    All Major aggregation groups already owned by big 4 so why they will represent us......

    Brokers were big threat( market share 60% and increasing every day) to banks . So it was big question for survival of banks .

    when any question on survival banks will do what every required ?

    Ask government to appoint royal commission and ask royal commission to recommend in report what they want through their suggestion..

    If any one seen bureaucracy closed how it works they know all....
  • broker to broke | 04 Feb 2019, 07:53 PM Agree 0
    I know its crazy... but here goes ,
    if they are saying the borrower should pay the broker a fee ...on the basis of a level playing field , can I suggest that banks should charge their direct retail customers the same loan processing fee in line with what a broker might charge...in this way we could charge the same fee and still handle the loan application with no extra cost to the customer than if they went direct...the marketing edge as a broker is that we can offer a number of lenders to compare for no extra cost....am I desperate ? or have I just invented a new way for banks to increase their bottom on 40% of loans written.... I need a drink
  • Hmmm | 04 Feb 2019, 08:19 PM Agree 0
    Things will end up like the UK - 2 year fixed rates and then churn the deal at the end to the next bank. Hours spent packing up a loan every 2 years and no service in between.
  • Reactive behaviours created this | 04 Feb 2019, 08:30 PM Agree 0
    Big news, but to be honest prior the this review taking place, all you heard were crickets from Business partners in support of brokers!!! Too busy setting up there own products and pushing brokers to write them? How is this fair? How isn't this a conflict of interest?
    It's sad that brokers are the ones that will feel the pinch from these decision's while your're so called "business partners" will be sitting there thinking of ways they can expand their business in lending with the banks. All these post's say we are for the broker, keep competition alive???? when all; along they have been dealing with the banks directly .. Seriously, what did you all think was going to happen? Fancy functions & events, overseas conferences at the banks expense/ sponsorship? These things all add up and haven't gone unnoticed clearly. Disappointing for the brokers yes, but if the higher parties actually did there job properly and were proactive then this could have all been avoided.
  • Phil | 04 Feb 2019, 08:35 PM Agree 0
    Time for a royal commission into the royal commission.
  • JS | 04 Feb 2019, 08:47 PM Agree 0
    Our little cuzzies over the ditch must be laughing at us now, watching us bend over & take a big one. They've been on up fronts for around 13 years now and from all accounts doing ok - of course they weren't stupid enough to allow a fee for service to be introduced - but of course we're more like the Netherlands than they are - right??
  • Brokerlife | 04 Feb 2019, 08:48 PM Agree 0
    Some classic responses here that make it clear why brokers are culpable in these findings.

    Do we work for our customers or the banks?

    Those of us who can explain to our customers the value of our service will survive, those of us who only provide a referral service customers can replicate themselves with Google and some patience in dealing with loan processing staff will, deservedly, find there isn't a livelihood in mortgage broking.
    • Logical Broker | 04 Feb 2019, 11:18 PM Agree 0
      yeah good luck asking your customer with 95 % LVR that you will charge them $3000 to put a loan with CBA, something they will not pay if they visit their local branch
    • Brokerlife | 05 Feb 2019, 06:02 PM Agree 0
      You might want to read the report before you comment on it - they will need to pay the branch the same sort of fees they'd pay brokers. Have a read of the relevant passages in Volume 1 of the final report - from page 77.
  • Bindy | 04 Feb 2019, 08:49 PM Agree 0
    James!!!! how's the future of AUSSIE looking now??
  • Proper broker | 04 Feb 2019, 08:56 PM Agree 0
    Misconduct didn't happen because brokers are paid commissions. It didn't happen because brokers didn't ask how many coffees borrowers took a week. So the royal commissioner Hayne, please explain how your recommendations address misconduct in the industry?
  • Aussie in shock of how stupid are Governments are | 04 Feb 2019, 09:31 PM Agree 0
    Completely agree with you.

    I would hate to see what happens to an already unstable property market. The economy can not handle this in the next 5-10 years.

    Consumers need to stand up and bring the county to a stand still.
  • RIP broker | 04 Feb 2019, 09:32 PM Agree 0
    Spot on Angry. How any broker supported CBA after that Goose and Hayne basically said we are going to destro you, beats me.
    A lot of idiots in our industry.
  • Futurist | 04 Feb 2019, 09:39 PM Agree 0
    Well at least Brokers can now claim conclusively that they will be the lowest cost channel for a bank to deal with...except no one wants to pay!!! #Haynetrain4bigbanks, #big4biggesttaxpayers, #teflonbankers
  • Broker knew Govt Deceit | 04 Feb 2019, 10:18 PM Agree 0
    Many are being fooled. If u follow world affairs/Economics, u would see the Corrupt performance of World Banks, IMF, regulators etc. Eg. IMF putting country's into Debt they cannot pay back, U.S.A. plans for invading soveriegn countries for their oil, Saudi Arabia as Head of Human Rights Council etc.
    This Royal Commision is nothing new.
    Major Cancer Banks cannot ask directly to get rid of Brokers bcuz they want their share of the business back. U don't ask Directly.
    C'mon, all this noise is to distract the crowds with small percentage of problems & bad cases...crowd yells Fix it, then who do they fix it for, the 4 Major Cancerous Banks.
    Crowd just happy something was Done.
    This is all pre-planned...& i wasn't born yesterday.
    These inept Major Political Parties of Australia have killed the Old Australia everyone wanted to come here for!!! As Brokers pls don't vote for them anymore.
    • HereComesMarxism | 05 Feb 2019, 01:33 AM Agree 0
      You will get called a conspiracy theorist but you are exactly right.
  • FFS | 04 Feb 2019, 10:21 PM Agree 0
    It looks like we are going to need to organise a class action type of response regarding the fact that our roles were never considered - this is the worst outcome for this industry and has no positives for the consumer, which is who it was supposed to protect.
  • retiring broker | 04 Feb 2019, 10:49 PM Agree 0
    The Royal Commission was created because poor banking practices destroyed thousands of lives and to create good customer outcomes. Congratulations Mr. Hayne you've achieved two things.
    1. You'll now be responsible for destroying thousands of Mortgage Broker lives yourself when the vast majority have been doing the right thing for their clients.
    2. Customers will now have to pay for something the banks should be paying for considering the vast profits they make every year and the outrageous bonuses paid to executives.

    you've done well! now the major banks profits will increase, which is what they're after.

    I can only hope better customer outcomes will be achieved as a result of the decimation of an industry providing in excess of 55% of home loans to the banks successfully.

    96.5% of people are not prepared to pay a fee for home loan service. What aren't you listening to.
  • Sad Broker | 04 Feb 2019, 10:51 PM Agree 0
    What is appalling is the Royal commission actually ended up benefiting the big banks in a big way, the ones he was supposed to correct, at the expense of small businesses and sole traders, and to top it up they are trying to convince that all the savings the bank will make will be passed on to the customers in terms of lower interest rates, what an expectation from the banks who charged fees to dead people.
    this is beyond a joke... I have lost faith in the integrity of these royal commissions moving forward.
  • | 05 Feb 2019, 12:53 AM Agree 0
    Aussie is owned by CBA.
    CBA purchased 80% of Aussie years ago!. Symonds at that point became another sellout for the right price.
  • Frank evans | 05 Feb 2019, 01:35 AM Agree 0
    Us customers hope it is the ruin of you corrupt brokers. Good riddance
    • Frank is unemployed | 05 Feb 2019, 11:31 AM Agree 0
      Did you lie on your application Frank?
  • Max Morris | 05 Feb 2019, 05:56 AM Agree 0
    Banks have retrenched staff for years
    Brokers took over the work
    Why shouldn't the banks continue to pay for what they get for nothing.
    LOOKS LIKE BANKS WILL NEED TO START EMPLOYING STAFF AGAIN OR SEND IT OFF SHORE... GOOD LUCK WITH THAT
  • 16 years a broker | 05 Feb 2019, 09:30 AM Agree 0
    How can a man earning $5,000 an hour and his female pitbull ($4,000 an hour) possibly understand what the average punter goes tjrough to get a home loan. He has probably never had a mtg in the last 30 years
  • RoyalRort | 05 Feb 2019, 09:48 AM Agree 0
    Before mortgage brokers ...

    Shopping for a home loan was like buying identical cartons of milk ... from a limited number of banks ... who, due to no effective competition ... were able to charge maximum interest rates to boost their profits.

    Basically there was no competition. Just an old school tie club deciding how much the peasantry paid for their home loans - with nice fat margins for the banks.

    Bank chiefs now hate brokers ... because they're loose cannons on the deck able to source loans from multiple sources.

    The Royal Commission exposed criminal behavior at the highest level of our banks.

    However, by shifting the blame focus to brokers the bank chiefs will effectively get away with their crimes almost Scott free ... and, almost overnight - destroy the broker channel and all the competition - and downward pressure on interest rates - it delivers.

    The bank bosses know that customers won't pay upfront fees to brokers ... so they'll simply go direct to the banks ... allowing them to regain total control of the lending market ...

    ... then all it takes is some old school tie, chin-chin, tally-ho ... backroom deals ...

    ... and interest rates will uber-escalate ...

    ... and the mug punter borrowers will pay.

    So this Royal Commission ... set up to investigate unchecked banking rorts ... has just given our banks the green light to carry out the biggest rort of all.
  • Broker | 05 Feb 2019, 12:04 PM Agree 0
    Bank shares up 5%-7% this morning and AFG and Mortgage Choice shares are down about 25%-30%.

    Pretty obvious that customers will be the big losers here due to this royal farce.
  • WhereAreYouAussieJohn??? | 05 Feb 2019, 03:03 PM Agree 0
    The Silence of the Symond ...

    ... One of the first brokers who built his empire on the slogan "We'll save you" ...

    ... is deafening today ...

    ... as the very industry from which he has benefitted the most ...

    ... now faces it's imminent demise ...
  • True Broker | 06 Feb 2019, 01:15 AM Agree 0
    I worked for the CBA for many years & would say that most clients over the last 3 years have avoided them & many existing CBA customers have moved away from them. ALL the Big 4 banks are the same. No service to customers or Brokers.

    I do not charge a direct fee for my service at any stage of dealing with customers & there is never an obligation to always deal with me or go ahead with detailed options investigated & provided.

    The trailing commission allows me to be available to talk to my clients' post-settlement with any issues they have with their loans or require guidance with any future finance matter. AT NO COST. I make that clear to the clients that the trail allows me to provide this service.

    This service can not be provided by the Lenders as their staff are not willing to help & they can never find the right experienced person to talk too (Most time waiting for a long time on the phone when they phone the call centres, branches never take calls).

    I always review loans every 2-3 years & explore what options they have, their current lender is always given the chance to match market rates, most of the time I am able to negotiate a rate where the client stays with the lender (No direct charge to the customer & I do not get any commission for this service by the existing lender) . But clients always have the option to refinance (Becuase the Broker works for the client).

    If they request a refinance I pay for the transfer costs from the upfront commission paid by the new lender. Therefore the client wins & is in full control.

    I recently started sharing my upfront commission with FHOB due to the trail commission being paid, now this will stop. Client misses out big time.

    Banks know that paying a trailing commission is cheaper than additional staff being employed (Where they need to pay rent for offices, running costs, superannuation, WorkCover, sick leave, LSL etc). Why would the banks say that it is a cost unless they want to make more profits).

    The commissioner is either insane or is getting a kickback from the Big 4 Banks who will have the power to charge what they can get away with as there will be less competition.

    How can he think that the client will be better off paying for a service that they have been getting for free? Lenders will now demand that clients go online & apply for loans with little guidance.

    All I can say is the commissioner is one STUPID person who does not live in the real world & has been paid millions for his idiot recommendations. It makes me sick that these people can continue to destroy our industry & make the client's life much harder & expensive.

    The Government will be kicked out of power if they adopt these insane recommendations.

    Look what happened with ASIC & APRA demanding reduced use of Interest only loans, The banks just increased interest rates & made Billions. (they increased rates on all products).

    We need politicians that understand that a good Broker will always look after the client's interests & is the only one that wants a long term Financial Relationship with them. Trailing commission works to the borrower advantage!

    Back to the dark ages & a lot of people out of a job & the Big 4 with start making record profits.
  • john curry the mortgage professional mona vale | 06 Feb 2019, 11:40 AM Agree 0
    seems that the commissioner does not understand or care about the brokering industry ? a complete shambles .
    question what is more important the greyhound industry 0r the broker industry ?
    A great number of families , livelihoods, lenders ,and borrowers will be severely impacted by this thoughtless and non caring recommendation .
    i have been providing a service to my clients since 1992. the service ongoing after settlement of the loan , with constant feed back , with quarterly newsletters and updates as and when required . we do not charge a fee .
    Over to FBAA, AGGREGATORES AND some banks without branch networks to take up the cudgel and challenge the commissioner .

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