Bank responds to “commission inequity” concerns

by Madison Utley28 Jun 2019

A non-major has revised its commission policy in a move it attributes to broker feedback.

ING yesterday announced that it will introduce an additional six-month review period for upfront commissions paid to mortgage brokers, allowing for extra commissions to be paid on additional net of offset balances of more than $10,000.

“Mortgage brokers have always been the main distribution channel of mortgages for ING, and we plan to continue to show our support of this important channel,” said ING head of third party distribution, Glenn Gibson.

“The decision to implement the review comes in response to concerns about commission inequity, highlighted to us by brokers via recent opportunities we’ve offered for them to share their feedback.”

The review period goes into effect in the new financial year, as of 1 July 2019, but ING has backdated the review to include loans settled from 1 January 2019.

ING was among the first crop of banks to change their remuneration in line with the reforms agreed to by the Combined Industry Forum as well as recommendations from ASIC and the Sedgwick Report in January of this year.

Instead of calculating upfront commissions on the settled amount, ING and others switched to computing based on the funds drawn down under the facility net of balances held in an offset account.

The first payment to eligible brokers under the additional review period will be made in August 2019.