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The Changing Face of Mortgage Broking in 2022

by | May 30, 2022 | Australian Broker | 0 comments

Australian mortgage brokers write two-thirds of all new home loans in Australia and in 2021, a Client Experience Report by MyNextAdvice stated that 98.3 per cent of clients believed their broker had acted in their best interests and almost 99 per cent stated they would use a broker again in the future. 93.8 per cent of clients stated they had no concern about commissions when asked about concerns regarding how brokers were paid.

This matches our experience in dealing with our network of mortgage brokers over the past 13 years. Hard working and putting their client’s first.

Perhaps a very few bad eggs have been pushed from the nest as the federal government has announced that the 2022 Review of Mortgage Broker Remuneration by the Council of Financial Regulators and the ACCC will no longer be required.

In February 2019, a report from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was released. In the report, Commissioner Kenneth Hayne addressed his ongoing concerns regarding broker remuneration arrangements that might be conflicted and warned that lenders that pay value-based commissions to brokers may be breaching their obligations under the National Consumer Credit Protection (NCCP) Act.

The Review of Mortgage Broking Trail Commissions would have introduced new measures to address conflicts of interest in the industry by better aligning the interests of consumers and mortgage brokers.However, last month, the federal government dropped the 2022 broker remuneration review as there was no evidence of mortgage broker misconduct from the current remuneration structure.

Further changes to the mortgage broker remuneration regulations will not be made at this time.

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