Australian Broker forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Symond vows war over DEF ban

Notify me of new replies via email
Australian Broker | 17 Mar 2011, 04:00 AM Agree 0
Aussie Home Loans founder John Symond has pledged to publicly fight the Federal Government if the DEF ban goes through
  • countrybroker | 17 Mar 2011, 10:31 AM Agree 0
    Good on Aussie John. we as an industry need tostart writing to the treasurer it is quite easy to find his public email address. My experience is that the more emails these politicans get the morsensitive they become. This is how they react to pressure group . If 5,000 brokers all write to the treasurer , it will be noticed .

  • Patrick | 17 Mar 2011, 10:49 AM Agree 0
    Hang on, LMI is never rebated or transferred when a loan is refinanced and, particularly if capitaised onto the loan, is an implicit deferred establishment fee. If not, then all non bank lenders can charge and capitalise an upfront establishment fee. Once capitalised into the loan it is simply a part of the total to be repaid or refinanced, whenever that might happen. If the interest rate is lower because these costs do not need to be recovered through margin, it will be esay to demonstrate that there is a break even minimum term. With this disclosed a consumer can make an informed decision based on whether they believe they are a long term or short term borrower.
  • Geoff Wilson - Urban Money | 17 Mar 2011, 10:59 AM Agree 0
    Everything John has said here is right. The government has no idea and are mouthing off about exit penalties without considering the impact of removing them. Teh banks will be rubbing tehir hands to gether 6 months after this is in place....
  • King Wally | 17 Mar 2011, 11:47 AM Agree 0
    Onya Symo, a vote for this Gillard led rabble will take this country back 30 years. If Gillard Swan and Brown get their way we'll be financing and living in mud huts!
  • John C | 17 Mar 2011, 12:25 PM Agree 0
    Forget emails, that has no impact, what is required is good old snail mail with several thousand letters clooging up their mail box will get their attention with a copy sent to his residential address will the attention you need.
  • M. J. Rollins - Mortgage Planning Institute of Aus | 17 Mar 2011, 02:22 PM Agree 0
    Symond is spot on!

    Wayne Swan's office has for pure political reasons jumped on this band wagon – it’s only being done for Labor Party ‘Popularity’ reasons and is yet another shameful example of how this Federal Government rummages around various industries playing God, messing with their very fabric just so they can manufacture favour on the nightly news for a eight second sound byte…

    Here is a small sample of the real issues:


    From an industry perspective it essentially starves out various competitive lenders, and as such reduces competition dramatically. Off balance sheet lending (Non Banks) are quite literally having their whole models attacked through this cheap and tawdry night time news heading


    Leading economists are on the public record stating that effectively by banning DEFS and discharge costs you are effectively cranking up refinance activity and ensuring that like options trading (a volatile instrument) you are putting in-place the machine-parts to accelerate ‘mortgage trading’.

    All things gradually evolve - our Federal Government is basically building the instruments legislatively that will lead to mortgages being so transportable that through their trading aggregate it will undermine the whole economy.

    We concur with leading economists (Excluding biased Bank Economists) that this instrument will hasten, accelerate and speed up refinancing activities and as such place an overwhelming burden on increasing values and real-debt-growth and lead to greater mortgage stress.

    At the macro-economic level this is just plain dangerous – turning mortgages into a retail ‘Mum and Dad’ traded instrument will erode the very foundations of our whole way of life – the ripple effects are enormous.


    Let’s be frank – Swan has a history of letting his 20 something ANU graduates in political science come up with glib eight second media grabs – the nightly news is everything to Swan and the faceless Labor caucus run by Bill Shorten – these Men think elected office is a prize for conning people into voting for them, and then when in office just prance about the place tearing apart industries without any real or genuine consideration for the thousands of people they effect, or in this case the industry they kill.


    What also speaks volumes here is how all of us, have been excluded from the discussion – three years on and still none of us have been consulted (and we never will) other than the banking lobbyists based in Canberra – Folks this is not rocket science, Symond is absolutely correct and we need to scream very loudly – there are forces re-moulding this whole industry – and there is only one group who can fund lobbyists to sit in Canberra and craft steering mechanisms, and that same group has Billions to earn from guiding and manipulating politicians.

    What’s going on here is no different to what Coles and Woolies do to the small family owned grocer and neighbourhood milk bar – guess who the grocers and milk bar operators are in this story.

Post a reply