The drum beat for greater regulation of the mortgage broking sector is picking up tempo, with a new survey highlighting shortcomings in the sector. The Consumer Credit Legal Service of New South Wales undertook the survey, while the Australian Securities and Investment Commission paid for it. The highlights:
• mortgage brokers collect up front commissions from lenders of between 0.5 per cent and 0.7 per cent of the amount borrowed, with a trailing commission of about 0.3 per cent, usually paid monthly.
• the survey found one instance of an up front fee of...
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