Out of Australia - from the royal commission
Key possible business impact on mortgage brokers in Australia. Wonder if the regulators will bring this into NZ.
Banking royal commission’s bombshell report: The key recommendations
• When customers make use of a mortgage broker, they expect the broker to be acting in their best interests. But at the moment, that is not necessarily the case. Often brokers are paid fees by lenders, giving them a perverse financial incentive to work against the borrower’s interests.
Mr Hayne’s recommendations will change the law to require brokers to act in the best interests of borrowers — not lenders, or indeed themselves. Any brokers who breach that obligation will face a civil penalty.
And on top of that, brokers will be paid by the borrower, not the lender, after a transition period of two or three years.
Source: https://www.news.com.au/finance/busi...p3Xrm0n4--swLs
Key possible business impact on mortgage brokers in Australia. Wonder if the regulators will bring this into NZ.
Banking royal commission’s bombshell report: The key recommendations
• When customers make use of a mortgage broker, they expect the broker to be acting in their best interests. But at the moment, that is not necessarily the case. Often brokers are paid fees by lenders, giving them a perverse financial incentive to work against the borrower’s interests.
Mr Hayne’s recommendations will change the law to require brokers to act in the best interests of borrowers — not lenders, or indeed themselves. Any brokers who breach that obligation will face a civil penalty.
And on top of that, brokers will be paid by the borrower, not the lender, after a transition period of two or three years.
Source: https://www.news.com.au/finance/busi...p3Xrm0n4--swLs
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