One of the largest mortgage broking groups says Commonwealth Bank has a concerted strategy “to destroy” the broking industry. Finsure, which has a network of 1,500 loan writers, is among mortgage brokers who oppose the Hayne Royal Commission’s call for commission payments to be scrapped.
Finsure managing director John Kolenda claims CBA and its chief executive, Matt Comyn, had an agenda at the Royal Commission. “He was really out to destroy the mortgage broker market,” Kolenda says. “It showed a well-thought-out strategic attempt to eradicate brokers.”
Bendigo and Adelaide Bank are other lenders that have been vocal in their support of banning broker commissions, while ANZ and Macquarie have cautioned that a flat fee model might have unintended consequences.
The industry is lobbying the Federal Government and The Opposition to open consultations on commissioner Kenneth Hayne’s recommendations. Treasurer Josh Frydenberg has accused Labor of not understanding the issues and says the Government is opting for a cautious approach to the recommendations on broker pay.