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Government ditches Hayne recommendation on mortgage broker pay

Federal Treasurer Josh Frydenberg has dumped a key recommendation from the Hayne royal commission regarding broker pay.

The federal government has ditched a key recommendation from the banking royal commission to scrap trail commissions for new loans arranged by mortgage brokers after pressure from the industry and smaller lenders.

The mortgage broker industry, which had warned that many brokers would go out of business if the Hayne recommendation was approved, cheered Treasurer Josh Frydenberg’s announcement on Tuesday that the government would now review trail commissions in three years if it remains in government.

via Government ditches Hayne recommendation on mortgage broker pay