In the past few days, both ASIC and APRA have stated uncomplimentary statistics about differentiating broker-introduced loans from in-bank loans.
ASIC released a report on 20 August, stating that interest-only loans are more likely to have been introduced by mortgage brokers. After going through the report in detail, what we found is that the proportion in question is around 55% - around the same as the TOTAL split of loans that originate from brokers! The press release failed to mention this, which does not do brokers any favours.
Then on Tuesday 25 August, APRA Chairman Wayne Byres delivered a speech quoting the APRA-collected statistics regarding 'introduced loans' having a higher likelihood of default. He warned banks to exercise "appropriate care" when underwriting credit introduced to them for consumers they have never met.
Whilst the ASIC figures may be statistically, factually accurate, it is yet another apparently blatant attack on mortgage brokers.
Our advice for brokers is this: you need to ensure all your NCCP obligations are being tested and documented. When the regulators find it hard to go after the larger players, smaller players like brokers can be an easy target.
If you are unsure about your NCCP obligations or are uneasy about the current regulatory environment, keep up-to-date through our website at http://www.complifast.com.au/mortgage-brokers and, if you're not already using it, make sure you subscribe to the QED CompliFast service. For $50-odd per month, it is the best protection and peace of mind you will ever get.