With an election just weeks away, the Federal Government has backed away from the banking royal commission's recommendation that all commissions in the mortgage broking industry be abolished.When Kenneth Hayne's final report was released, the Government pledged to ban trailing commissions from July 2020
That is despite overwhelming evidence that loans arranged by brokers tend to be larger, take longer to pay down and cost more than loans arranged directly with banks or other providers. And because the commission is a percentage of the size of the loan, there is also an incentive to encourage clients to borrow as much as possible.
Bank staff and third-party mortgage brokers are paid incentives and bonuses often based on the volume and size of the loans they write, rather than what's in the best interests of customers. The sales-driven culture was criticised by Kenneth Hayne in the final report of his royal commission.
Trailing commission's are wrong. IMO. Would a broker push a loan applicant to pay off a loan quickly, or a long term loan, where their commissions remain forward he period if the loan?
Disappointingly poor reporting. Blinkered and stubborn trend with this subject continues.
So much for reform.
Glass-Stegall because the banks and their regulators can never ever be trusted again !
What happens when parliament ignores what the professionals in the trade say?
More tax payer funded Ad's for the Labor Party from our ABC.
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Morrison govt abandons mortgage broker commission ban | Sky News AustraliaThe Morrison Government is abandoning a proposed ban on mortgage broker trailing commissions, in a major win for the sector. \n\nThe government's decision goes against the recommendations of the Banking Royal Commission report and will create a point of difference between the Coalition and Labor, which is promising to push forward with the ban. \n\nTreasurer Josh Frydenberg says the government is rejecting the recommendation because it wants to keep competition in the mortgage market. \n\nImage: News Corp Australia \n\n\n\n\n\n\n\n\n JimMolan ASIC is the SEC of Australia and like the SEC is bloody useless unless a giant vacuum cleaner sucks the rubbish out of it. JimMolan stop bullshitting, vast resources HAVE NOT been given to the ASIC JimMolan That is what the royal commission was supposed to do. Another waste of $50 million. The LNP knew a RC would achieve nothing.
Source: SkyNewsAust - 🏆 7. / 78 Read more »
Government ditches Hayne recommendation on mortgage broker payThe federal government has ditched a key recommendation from the banking royal commission to scrap trail commissions for new loans arranged by mortgage brokers | sdanck sdanck Apart from corruption, There's no other logical explanation. JoshFrydenberg Auspol 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 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 ?
Source: smh - 🏆 6. / 80 Read more »