Mortgage Choice denies franchise model encouraged poor lending practices

Mortgage Choice has strongly refuted allegations in the media that its current franchise model encourages poor behaviour or practices.

The company has robust compliance processes and credit policy controls in place that franchisees are required to adhere to, Susan Mitchell, CEO of Mortgage Choice said.

“Our franchisees are very diligent and want to do the right thing for their customers.

"We take any allegation of fraudulent behaviour extremely seriously and we have a very thorough and structured compliance regime in place.  

“The wellbeing of our franchisees is our number one concern. We provide any business owner experiencing hardship with personalised support, including from our field-based teams.

"We are well progressed in consulting with franchisees on a new remuneration model that will help them to succeed and invest in growing their businesses.” 

While Mortgage Choice believes brokers in the network still highly value the services the company provides, it acknowledges that the balance between services offered and remuneration provided needs adjusting. 

Mortgage Choice is in advanced discussions with franchisees and is aiming to have a new remuneration model in place by August 2018.
 
Mortgage Choice is not subject to any legal action, the broker pointed out.

The broker issued a video.