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Mon Mar 25

Sam and the honest broker: why Commissioner Hayne wants mortgage brokers to charge fees

Written by Kevin Davis, Professor of Finance, University of Melbourne

Wes Mountain/The Conversation, CC BY-ND

The Royal Commission recommendation that mortgage broker commissions, currently paid by lenders, should be replaced by up-front fees paid by borrowers, has been controversial to say the least.

Royal Commissioner Kenneth Hayne wanted to eliminate first the “trail”, or annual ongoing commission paid...

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