FSR for mortgage brokers
A lack of clarity around the types of mortgage products on offer and the different specialisations developed by industry participants has given rise to high levels of confusion and a mortgage blame game, according to an analysis undertaken by Deloitte.
At the same time, the analysis has pointed to a broad consensus on the need to regulate mortgage brokers in similar fashion to financial advisers.
The big accounting and consulting firm undertook an analysis of submissions to the Parliamentary Inquiry into home lending practices and processes and said that high levels of confusion had been caused by misunderstanding a complex and increasingly sophisticated lending industry.
According to the head of Deloitte’s Securitisation practice, Graham Mott, these confusions were tending to give rise to consumers and their advocacy groups blaming the lenders.
“The banks and the regulators claim their standards remain robust. And the well-established, non-banking lenders point at the few renegade fringe operators of the industry who all agree are in danger of bringing the industry into disrepute,” he said.
Mott said the challenge for the industry and the inquiry was identifying the renegades in circumstances where sufficient data was currently unavailable.
AUTHOR
Mike Taylor
Recommended for you
Adviser losses this week are quadruple the same period a year ago, with the industry falling into negative territory for the last 12 months.
Colonial First State has announced the latest manager to join its Edge managed accounts menu, focusing on providing investors with a strategic income.
Rising advice fees has prompted Radar Results to increase its price guide to a minimum of $3,000 per client to reflect the changing shape of the adviser landscape.
Investment consultancy Ascalon Capital has appointed a new partner, who joins from 20 years at Zenith Investment Partners, as well as a new chief executive amid a “bold new chapter” for the firm.
