Mortgage Industry: Delighted Over Liberal Win

Mortgage Industry: Delighted Over Liberal Win

Mortgage Industry

Delighted Over Liberal Win

As a previous participant within the mortgage broking industry, it would have been a prime time for the industry currently, due to Labor’s salvation of valuable trailing commissions that were discussed to be banned under Labor government rule, Being revoked for the successful  re-election of Coalition.

For this particular occasion, said to be extremely favourable for the whole Mortgage brokering industry as the distribution is extremely relieved that the Hayne royal commission recommendations will not be adopted when it comes to remuneration for the brokers. Voters were warned about the risks of Labor’s negative gearing changes as well.

Industry spokesperson Katrina Rowlands said the Labor had underestimated the strength of the broker community. Ms Rowlands raised a campaign against the adjustments and specified the election results as great outcome for the industry and the clients.

How the Coalition is going to conduct the is that the liberals have chosen not to proceed with the recommendation from the Hayne royal commission to scrap trailing commission  and stop the banks institution paying upfront commissions, Instead choosing to review the policy in 3 years’ time.

Under the Labor government proposal trailing commissions were set to be banned from 1st July, 2020. Labor did plan to cap upfront commissions paid by the banks at 1.1 percent of the total loan amount drawn out by the borrower.

Since the proposal was announced the mortgage broking industry was condemned to be unworkable, with many predicting massive job losses in the sector would follow. The mortgage broking sector rallied hard at the open, there for the gains became more muted during the day.

With some industry giants stock shares witnessing some substantial growth, Mortgage Choice shares closed 14.5 percent high, Yellow Brick Road shares closed at 7.8 percent and Australian finance group closed at 6.7 percent higher, all due to the continuation of the Coalition re-election.

As part of being a mortgage broker it is essential for brokers to work hard to provide the best deal to their clients and since the royal commission began in February 2018, it is said that the workload has increased to four-folds of extra commitments to their occupation.

Mortgage and Finance Association of Australia CEO Mike Felton said the industry had much to do with not being able to withstand the stunning results. He stated that the industry would not rest and need to reform and evolve to meet customer expectations around education and transparency.

Click here for a one month free trial to our Lotus Blue Portal.

KOSEC does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information provided. KOSEC is intended to provide general information only. Please be aware that investing involves the risk of capital loss. This message is confidential and may be privileged. It is intended only for the use of the addressee named above. If you are not the intended recipient, any unauthorised dissemination, distribution or copying is illegal. We do not guarantee the security or completeness of information hereby transmitted and are not liable in either respect or in respect of any delay. Nothing in this message is intended as an offer or solicitation for the purchase or sale of any financial instrument. Any market prices or data, unless specifically verified and identified as such, are not warranted as to completeness or accuracy. Kodari Securities Pty Ltd (KOSEC) is a Corporate Authorised Representative (No. 399 556) of Longhou Capital Markets (AFSL No. 292464) which is regulated by the Australian Securities and Investment Commission (ASIC). KOSEC wishes to disclose that KOSEC and its staff may hold stock they recommend in their own portfolios and that any decision to purchase recommended stock should be done so after the purchaser has made their own inquires as to the suitability to their own requirements. Click here to view our FSG.
Rate this post

div#stuning-header .dfd-stuning-header-bg-container {background-image: url(https://www.kosec.com.au/wp-content/uploads/2019/01/Dashboard-Blue.png);background-size: cover;background-position: center bottom;background-attachment: initial;background-repeat: no-repeat;}#stuning-header div.page-title-inner {min-height: 335px;}
X