Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Bank introduces review period for broker commissions
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Bank introduces review period for broker commissions

ing ta ing ta
Charbel Kadib 2 minute read

A lender has announced that it will alter the manner in which it pays upfront commissions to brokers by introducing a six-month post-settlement review period. 

ING has announced that it will introduce a six-month review period for upfront commissions paid for broker-originated home loans. 

At present, the non-major calculates the upfront commission, net of offset, on the fifth day following settlement of the associated loan.

However, while commissions will continue to be calculated by ING five days post settlement, brokers will now be remunerated for subsequent drawdowns of the loan, which exceed $10,000, over an additional six-month period. 

Moreover, the bank has announced that the review period, which will be effective from 1 July 2019, will be backdated to apply to loans settled from 1 January 2019, with the first payment to eligible brokers scheduled for August 2019.

Advertisement
Advertisement

ING’s head of third party distribution, Glenn Gibson, commented: “We’re excited to announce this change, which reflects our continued commitment to supporting our broker network.

“The decision to implement the review comes in response to concerns about commission inequity, highlighted to us by brokers via recent opportunities we’ve offered for them to share their feedback.”

Commission payments based on the amount drawndown by a borrower came into effect at the start of 2019, to reflect recommendations from the ASIC and Sedgwick reviews, which were backed by the Combined Industry Forum's (CIF) package of reforms.

[Related: Borrower fee flagged as option to mitigate clawback risks]

Bank introduces review period for broker commissions
ing ta
TheAdviser logo
ing ta
Charbel Kadib

Charbel Kadib

Charbel Kadib is a journalist on the mortgages titles at Momentum Media.

Before joining the team in 2017, Charbel held roles with public relations agency Fifty Acres, and the Department of Communications and the Arts. 

Charbel graduated from the University of Notre Dame Australia with a Bachelor of Arts (Politics & Journalism).

You can email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

FROM THE WEB
more from the adviser
Fixed rate demand fell to eight-year low after RBA rate cut

The demand for fixed-rate mortgages dropped to an eight-year low ...

Aussies sitting on the fence as housing sentiment shifts

Recent political and economic developments have helped trigger a ...

More details of new SME business fund released

Those wishing to access the government’s new SME business fund ...