Up-front and trailing commissions paid to mortgage brokers by lenders are making the home loan market more risky, the royal commission said in its interim report, keeping the prospect of a clampdown on broker pay alive.
The report said "assertions" by Aussie Home Loans and other broker groups that commission-based remuneration structures in the mortgage broking industry aren't causing bad outcomes "are not to be accepted".
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James Eyers writes on banking, payments and fintech. He is a former legal and investment banking editor at the AFR, has degrees in commerce and law from UNSW, and is co-author of Buy now, pay later: The extraordinary story of Afterpay Connect with James on Twitter. Email James at jeyers@afr.com.au
Joyce Moullakis wrote on banking and finance, specialising in Investment Banking, Private Equity, Financial Services. Connect with Joyce on Twitter. Email Joyce at jmoullakis@afr.com.au
