By: Staff Reporter
The costs associated with regulation will push a lot of brokers out of the industry, Aussie Home Loans chief executive Stephen Porges has said.
According to Mr Porges, smaller brokerages will be unable to support the level of infrastructure and regulation demanded by new borrower protections.
“You will see an amalgamation going on within the industry, the likes of which I don’t think we’ve seen before,” Mr Porges told The Australian Financial Review.
“Unless you’re a group that can spread the cost over 500 brokers and up, I think you’re going to struggle. A lot of participants will disappear.”
From 1 July, mortgage brokers must apply for a license in order to engage in credit activities.
Brokers will have six months to obtain the license. Registration for licensing opened 1 April.
