QED Are proud to be a part of the broker community, and are incredibly disappointed to see the overbearing and unnecessary slamming of broker activities in the news and during the course of the broker commission for issues which are commonly completely irrelevant to the work of brokers, rather indicative of breakdowns within the banks or other members of the lending community.
In response to an article that is becoming all-too-common in today's mainstream media in which reviewed the royal commission's scrutiny of CBA (available at https://www.theaustralian.com.au/business/banking-royal-commission/banking-royal-commission-cba-fails-to-scrap-mortgage-broker-commissions/news-story/a35dec1522ae6e1a1a8d974c3fcdb5c3 )
"What is missing here? Is it selective reporting by The Australian, or was it selective testimony given to the Royal Commission? Because what is written here does not fully represent the facts.
The biggest fact to remember is that the majority of ALL loans are introduced by a broker. So, simply saying loans that go into default are more likely from the broker channel is a deliberate distortion of the truth when the fact is that ALL loans are more likely to have been from the broker channel.
If Narev's submission to the Sedgewick review was "confidential", then why has CBA now chosen to make it public? Yet another strong indication that CBA wants to close down the broker channel.
In stark contrast to the, now largely discredited, Sedgewick review, the extensive review performed around the same time by the government regulator, ASIC, came to the conclusion that broker commissions were largely fine and did not warrant further review for at least a few years.
What WAS highlighted by the ASIC Report was incentives based on a broker group writing particularly large volumes; and lender sponsorship of big broker "junkets". Both of these practices were ceased even before ASIC had finished typing its Report.
One way or another, this article ended up being an ill-informed broker bash.
In the interests of full disclosure, I own a company whose clients are mostly mortgage brokers and whose role it is to help those brokers keep themselves in line with their legal and other obligations. We have a LOT of broker customers, so what does that tell you about the industry, when they will pay someone to help them comply?"
Of course, this may or may not be published. But QED are tired of seeing good brokers be dragged through the mud needlessly, but we believe it is important for us and all brokers to be raising these messages on every platform available to us.