Broker regulation talks start

Business groups have said that regulation of the mortgage broking industry will help drive out fringe lenders. Peak groups representing brokers, the Mortgage and Finance Association of Australia and the Finance Brokers Association of Australia, have long called for federal licensing of the industry. The Council of Australian Governments will discuss the issue today encompassing mortgage lending and advice, lending by non-deposit taking institutions and margin lending. Mortgage brokers sold 39 per cent of new loans during the second half of last year and there are an estimated 15,000 to 18,000 unlicensed operators.

Source: The Australian Financial Review