CBA refuses to pay broker fee
Mortgage Choice has dumped the Commonwealth Bank from its lenders list for refusing to pay a $200,000 “soft dollar commission”, used to fund the broker's staff conferences and business writers' meetings. A CBA spokesman said the bank doesn't believe mandatory sponsorship should be a condition of being included on the broker's lending panel. Mortgage Choice CEO Paul Lahiff defended the decision to impose sponsorship fees on its loan providers and said these would be made transparent to customers. The National Australia Bank's HomeSide Lending is also negotiating with the broker to reduce its sponsorships demands.