The move towards uniform national regulation has strong support from the mortgage industry, but there are fears that the proposed National Finance Broking Bill 2007 could decimate third-party distribution in Australia if passed in its present form.
Of chief concern is Clause 33 of the proposed Bill – prepared for the Ministerial Council on Consumer Affairs by the NSW-chaired Finance Broking Working Group – which places an obligation on brokers to determine a borrower’s capacity to repay a mortgage, a process currently performed by the lender.
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