What a win it's been for the major banks last week.
Hearteningly there's been sensible commentary aplenty about the misguided recommendations on the structure of mortgage broking, which don't make any sense with a 'real world' hat on.
As prominent industry stalwart John Manciameli has pointed out, imagine the outcry when banks raise mortgage rates off the cuff by 50 basis points on 'funding cost pressures' (or whatever) and customers have to pay another $5,000 fee to refinance out of their loan (leaving the borrower paying $10,000 just to get in and out of the deal).
Just one of a thousand potentially daft scenarios.
Just one of a thousand potentially daft scenarios.
Everyone agrees that there should be a 'best interest' imperative for mortgage brokers.
But commission structures should be left alone, and the scenarios being discussed would just load even more power into the four major banks.
If broking ain't broke...
If broking ain't broke...
PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and blogger.