Comment of the Week goes to Andrew

by AB23 Aug 2013

This week’s winning comment comes from ‘Andrew’ and relates to Monday’s article on clawback confusion.

In the story, Australian First Mortgage (AFM) founding director, Iain Forbes and Gadens Lawyers partner, Jon Denovan, discuss the ethicality – and legality – of passing clawback fees onto clients.

Andrew responded with the following comment:

“As Iain says "no business can pay a commission, have the mortgage discharged and not charge a clawback..." and that exact concept applies to the Broker’s business too. The broker incurs costs writing the loan, so just as the lender seeks to recover some costs via clawback, so too the broker should seek to recover some costs via a fee. If it is ethical for a lender to recover some costs, then it sure ain't unethical for a broker to do the same.”

Thanks to everyone who contributed comments over the last seven days and keep an eye out next Friday to see if you're the author of Australian Broker's next top 'Comment of the Week'!