A letter addressed to mortgage brokers and signed by both Prime Minister Scott Morrison and Treasurer Josh Frydenberg has contrasted the liberal government’s receptiveness to the industry’s royal commission pushback with Labor’s unyielding embrace of 75 of the 76 recommendations.
The letter directs attention to the time and effort the Morrison Government took to consult with brokers before deciding not to prohibit trails as per Commissioner Hayne’s counsel, but rather to revisit the issue in three years’ time.
This decision is linked with the liberal government’s assurance that brokers are “critically important” for competition and consumer outcomes in the mortgage market.
The focus then shifts to an examination of the opposition’s stance.
“The Labor party wants to prohibit trail commissions and introduce a fee capped at 1.1% of the value of a loan, which will mean you won’t get properly compensated for the value you add to your clients.
“Unlike Labor, we support you and your industry. We will continue to advocate for you and the interests of the consumers you serve so well,” the letter claims.
Attention was also drawn to Labor’s proposed changes to negative gearing and housing taxes, which “will lower home values, increase rents, and accelerate the slow-down in the property market.”
“We are concerned about reports that Labor is refusing to listen to those affected, or those with expertise (such as yourself), who understand the risks,” the letter continues.
The conclusion came with an invitation to contact the offices of either Prime Minister Morrison or Treasurer Frydenberg for additional information on the government’s position.
