Mortgage Choice warns

Another one bites the dust:

Shares hammered but wider realty stocks fine because it is only MOC don’t you know:

Comments

  1. They should really disclose their commissions to the punter when they sign them up. Also it’s in mc interests to give our fat loans for the longest period of time

    • The Penske FileMEMBER

      If you’re talking about the broker rather than the aggregator MC) they do disclose commissions at sign up on NCCP loans. MC audit this very well….. I don’t think they do much well but auditing this they do.

  2. so they are on track to achieve a 10% reduction in operating cash expense base from FY18 to FY19, and yet forecast full NPAT to be 10%-15% lower than their previous guidance only 6 months ago

    so revenue is being absolutely hammered…

  3. The contagion begins. If more than a handful of FIRE sector firms go bust the whole creaking edifice will collapse under their own contradictions. No one is writing fresh debt. The fees have stopped already. Err…

    Don’t Buy Now!

  4. MOC is in fact in a special bucket because the whole business is based around broker commissions which Hayne wants to radically curtail.

    Currently brokers help their clients get approved for the biggest mortgage at the cheapest rate. Win for broker win for customer. With the Hayne changes, it’s proposed to become a fixed fee service, meaning a loss of customer (go direct to bank instead and avoid fee) and a reduction of commission amount (no extra commissions for big mortgage).

    The other business in the chart are just different. MOC should be grouped with Aussie and maybe AFG (although AFG is more diversified these days).

    Really, MOC should be tanking more than it is when you consider that it’s adjustment is not much more than the adjustments in broader real estate sector..