One industry pundit has said the recently introduced National Consumer Credit Protection Act will result in widespread industry consolidation.
In an exclusive interview with Market Focus, Aussie chief executive officer Stephen Porges said the onerous responsible lending obligations and education requirements being pushed upon the industry by the new legislation would adversely impact the number of players within the mortgage space.
“There is no doubt we will see a lot more consolidation in the industry moving forward. The amount of time, money and effort we put into being ready for the new regulation is extraordinary. It is our number one focus. And, if we are struggling, and we are struggling to keep up with it because it changes on a day to day basis, I do not understand how the smaller players can cope with all the changes,” he said.
According to Mr Porges, it is safe to say that the overly burdensome regulation requirements will ultimately force part-time brokers out of the industry altogether.
“At the end of the day, it will be the likes of us (the bigger players) that can not only withstand the changes, but are strong and able to compete in the new regulated environment.”
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