26 | winter 2018 cmba-achc.ca CMB MAGAZINE
A
consumer group in Australia
has incensed the mortgage
broker industry there by
calling for all commissions
to be scrapped – a suggestion
that triggered an immediate and scathing
reaction from the Finance Brokers
Association of Australia (FBAA).
e call by consumer organization
CHOICE was contained in a submission
to Treasury, which is conducting a review
as part of a legislative and regulatory overhaul
of the industry.
e Australian Securities and Investments
Commission (ASIC) started the process
by releasing a report on mortgage broker
remuneration. at report recognized that
mortgage brokers provide a useful service
to consumers by allowing smaller lenders to
compete with the major banks on a national
level, but CHOICE has got the industry offside
with its call for mortgage broker commissions
to be banned.
CHOICE suggests the way brokers are paid
creates risk because they could potentially give
borrowers bad advice that could result in people
ending up with bigger, less suitable loans.
"e consumer advocates who made that
suggestion have no regard for the competitive
position and incredible value proposition that
Here's why they're wrong
Australian
Consumer
Advocates Take
Aim at Broker
Commissions
