In line with industry recommendations and moves from other lenders, ING has announced it will change the way it calculates upfront broker commissions.
The move follows the Combined Industry Forum’s (CIF) package of reforms, as well as recommendations from the Sedgewick Report and ASIC remuneration review.
Under the changes, upfront commissions will be determined on total net loan balances calculated, five calendar days following settlement.
ING’s changes will come into place from 1 January 2019.
Glenn Gibson, ING’s head of third party distribution & direct mortgages said, “We have two main objectives to achieve here: the first is to clearly deliver on the industry’s reform package and the second is to keep the commission structure simple.
“To that end we’ve taken a straightforward approach to ensure the change is easy to understand and operationalise for all parties.”
MyState Bank also made a similar announcement this week, although said it would be assessing the commissions based on the drawn down balance on the tenth calendar day of the month, rather than the fifth.