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Mortgage brokers must be celebrating Labor's backflip

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27.02.2019

The TV ads are, frankly, hysterical – not in the "funny, ha ha" way, but in the "lock Janet up, she’s hysterical" way.

A young family walk down a long, narrow corridor, passing shut doors representing the home lenders they can no longer access because royal commissioner Kenneth Hayne killed all the mortgage brokers. Or something. You get the gist.

Replay

And the 2019 award for industry lobby group of the year goes to … the Mortgage and Finance Association of Australia, for its compelling portrayal of the absurd argument that the services of mortgage brokers are essential to Aussies families, but that no one would be willing to pay for them, if asked.

Bravo.

The MFAA’s lobbying strike against Hayne’s recommendation that broker commissions be abolished – and replaced by a conflict-free user-pays pay model – was swift, and highly effective.

The government started softening its rhetoric even before the final report was released, repeating the industry talking points of negative “competition” impacts if broker commissions were reformed.

Commissioner Kenneth Hayne.Credit:Brook Mitchell

Opposition Treasury spokesman Chris Bowen, however, vowed he’d need a "very, very, very good reason" to reject any of Hayne’s findings. But last Friday, Bowen announced Labor’s spectacular........

© The Age