Mortgage industry put on notice

Mortgage broker X Inc Finance has called on the new Federal Government to overhaul the regulations governing home loan lending to ensure all parties meet minimum professional standards.

X Inc chief executive officer Jennifer Nielson said there needed to be a standardised set of regulations via a national licensing system in order to make the industry more accountable and transparent.

“One idea that I strongly believe in is making lenders and aggregators more responsible for the behaviour of their own mortgage brokers,” Nielsen said.

“That isn’t possible under the existing state-based schemes and is unlikely to occur unless we have some national leadership.”

“I’m calling on the new Labor Government to assume that leadership role and work with the industry to develop a national licensing system that encompasses not only brokers but all other parties involved in the lending process,” she said.

According to Nielson, a national regime that could be applied broadly would ensure borrowers were protected whether they dealt through a broker, an accountant, solicitor, financial planner or bank.

Nielson put forward the need for mortgage brokers to develop a commitment to ongoing training in order to maintain a current knowledge base.

“Mortgage broking is a specialist, full-time business, no different to any other profession and brokers need to update their knowledge almost daily,” Nielson said.

“The wrong advice to a customer on a loan can cost them a great deal financially, particularly in the current climate of increasing interest rates and the rising cost of living. People have the right to expect that they are being served by a full time, knowledgeable, fully briefed and up-to-date professional.”