Government ditches Hayne recommendation on mortgage broker pay

The federal government has ditched a key recommendation from the banking royal commission to scrap trail commissions for new loans arranged by mortgage brokers after pressure from the industry and smaller lenders.

Federal Treasurer Josh Frydenberg has dumped a key recommendation from the Hayne royal commission regarding broker pay.Commissions paid to mortgage brokers was one of the key focus areas for the royal commission, with commissioner Kenneth Hayne recommending in his final report that commissions to brokers be axed and replaced by an upfront fee.

"It is also backed by commentary from both ASIC and the Treasury that suggests that consumer outcomes could in fact be worsened in the absence of trail with the possibility of increased churn, reduced quality and heightened conflicts." Labor has pledged to abolish trail commissions if it wins government and instead allow brokers to charge an upfront fee, which is expected to be about 1.1 per cent of the loan.

sdanck Money talks!

sdanck Josh caved in to d brokers &fin planners like LNP caved in to coal miners We need to root out d incestuous relationship between gov n industry Trailing comm was d source of greed The public were led blind to a garden path enriching d brokers

sdanck Is it a case of getting that desperate they are chasing extra votes or are the donations to big that they have to do a back flip on the commissions recommendations?

sdanck My understanding was that the recommendation wouldn't be implemented until 2022. Gives the industry a chance to adapt without massive disruption.

sdanck I’ve seen more balls on a vestal virgin than this bloody government.

sdanck Does this lot ever learn? A key recommendation and they say “nuh, she’s ok. We’ll just ignore this one lads”. What a joke. What’s the bloody point having a royal commission if you’re going to ignore the main points?

sdanck Isn’t it pathetic. An RC that costs millions and exposed so much corruption and then ignore it so a few brokers don’t have to properly work for a living.

sdanck Josh fed out again to do the Friday trash but it’s not Friday. Just Josh doing the work of the masters must be part of his religious background to take so much shit and keep smiling. Hey Josh another shit sandwich tomora mate ?

sdanck This makes it even more urgent to vote the LNP out. They said they would act on the comission and they did....by ignoring it. Surprise! Backing their banking pals.

sdanck Apart from corruption, There's no other logical explanation. JoshFrydenberg Auspol

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

'I couldn't pay my mortgage': How Liz Cambage was pushed to the limit'I couldn't pay my mortgage': Liz Cambage has revealed her battle to make ends meet after pushing her body past breaking point for club and country last year | geerob geerob Always the victims, facilitated in their ‘woe is me’ addictions by the femherald. geerob not special just to her Lots of Aussies hurting she is NOT special just cause she is a athlete auspol geerob FFS she made her choices, it’s just life! She needs to grow up!
Source: smh - 🏆 6. / 80 Read more »

'I couldn't pay my mortgage': How Liz Cambage was pushed to the limitOne of Australia's most successful woman athletes has learned the hard way that only she has her best interests at heart. There are many limits, but this ain’t one... More and more people are finding that so unfortunately! $200k in two years.., probably club drs, physio, food, sponsored clothing? Ye that is a struggle
Source: theage - 🏆 8. / 77 Read more »

Labor to implement nearly all of banking commission recommendationsLabor is promising to implement all but one of the 76 recommendations of the banking royal commission, if the party wins the next federal election. 9News I don't trust a Shorten Government
Source: 9NewsAUS - 🏆 10. / 72 Read more »