March 16, 2017
Mortgage Choice chief executive officer John Flavell has welcomed the Australian Securities and Investments Commission's (ASIC) review into mortgage broker remuneration.
As part of its Review of Mortgage Broker Remuneration report, ASIC made it clear that brokers play a very important role in the home loan market.
“They are responsible for arranging around half of all home loans in Australia. Consumers are increasingly turning to brokers to get help in obtaining a home loan,” the report read.
Speaking about the report, Mr Flavell said ASIC are acutely aware that brokers can play an important role in promoting good customer outcomes and driving competition in the home loan market.
“We have had a look at ASIC's report and it is obvious that the regulator believes mortgage brokers provide a tremendous amount of value to consumers,” he said.
“In addition, they believe the logic behind the current commission model, which involves an upfront and trailing commission payment, is sound, but believe there is the potential to make some subtle changes around the fringes of the current remuneration structure.
“We have supported ASIC's Review of Mortgage Broker Remuneration investigationfrom the beginning,and have worked closely with the regulator throughout the process.
“We look forward to continuing our work with the regulator and conducting ongoing consultation with the Treasury over this next period.”