After months of waiting, the Federal Election results on Saturday night meant mortgage brokers could breathe a sigh of relief about their remuneration.
The Liberal party, which promised it would not abolish trail next year as recommended by Commissioner Hayne, saw a surprise victory.
While it made the u-turn on trail, there will be a consultation in three years’ time to assess the impact of removing the commissions – so the work does not stop there.
Broker groups and industry leaders have said they will continue to work with the government and all politicians across the country. Managing director of the FBAA Peter White said it was time to take the handbrake off and hit the accelerator.
“The royal commission findings and the political fallout saw many brokers retreat into a holding pattern, driven by fear about their very financial survival and what that would mean for borrowers,” he said.
“Now that the election is over, I want to urge all brokers to commit to doing everything we can to grow our businesses now that banks know we are a force to be reckoned with.”
Could that “force to be reckoned with” have had anything to do with the election result?
While it’s probably impossible to say, CEO of the MFAA Mike Felton said it might be so. “I also believe that calling attention to the potentially negative outcomes for competition and access to credit that would result from the full implementation of the Royal Commission’s recommendations played a role in the result.
“This reaffirms the fact that 27,000 people employed in the mortgage broking industry, their loved ones, and the many customers they serve, are an important constituency in our community.”
So, what is the industry going to do moving forward?
Let’s not forget that there is a consultation in three years’ time and the education must continue to ensure that looks at the right things: whether that be unintended consequences, the benefits of commissions and, importantly, all that work the broker does to earn their trail commission.
Felton said to continue being an industry with outstanding data on customer satisfaction and growing market share, it must continue to reform and evolve. The MFAA will be working with the government as the industry progresses the Combined Industry Forum’s reforms package.
It will also re-engage with Treasury to further advocate for the industry and Australian home buyers in response to the recommendations, Felton said.
There is work for the broker too. “What we need from all of you is to continue your great work with customers, and to provide us with ongoing feedback on how proposed reforms will affect your businesses,” Felton added.
“It is the hard work of every broker and aggregator in the country and the positive customer outcomes produced that helps our industry remain sustainable and successful for the long term.”