The nation’s biggest mortgage lenders are boosting controls over brokers amid growing regulatory and political pressure to tighten commission payments, boost transparency and responsibility to borrowers.
Bankwest, which is owned by Commonwealth Bank of Australia, the nation’s largest lender, is reducing long-term trailing commissions, reintroducing a first-year commission and tightening payments on other commissions.
Ian Rakhit, a Bankwest general manager, said it is changing commission payments to “ensure it aligns with evolving industry practice and regulator expectations”.
Westpac, the nation’s second-largest mortgage lender, is banning deals where the broker is the applicant, or one of the applicants, and tightening …
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