ABC’s The Business on Thursday evening ran a segment on the $50-billion mortgage broking industry, which has been accused of dodgy dealings during the Banking Royal Commission.
The segment covers the trailing commissions, skewed incentives, and risks inherent within the broking industry, with consumer organisations like Choice accusing the industry of selling borrowers larger, more expensive loans that take longer to repay, with customers losing out through excessive fees and incentives.
According to the segment:
“It’s big business. In 2015, loans generated $1.4 billion in upfront commissions and a further $948 million in trailing commissions”…
“The broker may say they act for the client. But they are paid to act for themselves or act for banks and other lenders”.
