ASIC's consultation process for overhauling remuneration models in the mortgage broking industry has entered its final stages, with the regulator expected to recommend bans on all volume-based payments and soft-dollar incentives in the home lending supply chain.Several mortgage industry leaders told Banking Day this week that sales bonuses and non-cash payola will be prohibited under the final package of reforms that ASIC will put to government before the end of the year.However, the feedback from the regulator to industry is that it will likely recommend that existing upfront and trail commissions remain substantially intact - thanks to a convincing defence by the aggregators that dominate this space of their business model."The feedback from ASIC and other regulators is that they don't see a need to change standard commission arrangements used by lenders to pay brokers for originating mortgage business," one senior mortgage industry source said."That means upfront and trail commissions are likely to stay, but it's pretty clear that all volume-based payments and soft dollar rewards will be going."Banking Day confirmed this feedback with two other industry participants who were involved in consultations with the regulator.Completion of the ASIC review comes at a sensitive time for thousands of mortgage brokers who are facing pushback from Commonwealth Bank over the size of commissions.A controversial report published earlier this month by UBS analyst Jonathon Mott claimed that broking commissions had been "spiralling upward for many years" and that CBA had a strategic interest to deal directly with borrowers.Mott's report is controversial because standard commission rates - for upfront and trail - have actually fallen over the last decade.The problem for the argument put forward by Mott and the CBA is that most home borrowers are walking into a broker's office to shop for a loan, rather than dealing direct through a branch or another bank-owned channel.While the standard commission model is likely to remain, ASIC will probably recommend some changes that will reduce incentives for brokers to get clients approved for larger than necessary loan values.The looming bans on sales-based bonuses and non-cash incentives began to filter through the mortgage distribution industry in March after ASIC published the findings of a review of broker pay structures.Many lenders have already withdrawn bonuses and holiday rewards ahead of the expected reforms being enacted by federal parliament.Lenders that have recently abolished volume-based payments and soft dollar incentives include AFG, National Australia Bank and Westpac.In its submission to Treasury during the consultation period, AFG said that it did not pass on volume-based incentives to more than 2000 brokers aligned to its platform. However, that was not always the case.In recent years, AFG ran competitions that rewarded brokers who sold the most AFG-branded mortgages with holidays to exotic locations such as California and Barcelona. These rewards also included exclusive dance parties that featured chart-topping performing artists such as Groove Armada.NAB, which owns three aggregator platforms, also stated in its submission that it supported ASIC's proposal to ban volume-based payments to brokers.However, in 2014 NAB was caught offering