Via Jess Irvine on the Banking Royal Commission:
NAB’s dubious practice of paying third party “introducers” – including gym owners and tailors – large fees for referring potential customers to its bankers was exposed at length by Orr last week.
But arguably the most glaring instance of incentives gone wrong in the mortgage market is the way mortgage brokers are paid.
More than half of all home loans written each year in Australia are organised through a mortgage broker…The bigger the loan – and the longer it takes to pay it off – the bigger the commission the broker earns.
