Mortgage brokers roped into national regulation
The Ministerial Council on Consumer Affairs recommended that states and territories adopt a uniform national framework for regulating the mortgage broking sector. In a discussion paper, the ministers propose a licensing system, education requirements, compulsory professional indemnity insurance and membership of dispute resolution schemes. Brokers would also have to provide a statement of reasons for recommending a particular loan. The discussion paper says self-regulation of mortgage brokers is not working. The Mortgage Industry Association said it welcomed the recommendations.