Ombudsman seeks more rules for non-bank lenders

Graeme Matthews, chair of the credit ombudsman scheme for mortgage brokers has called for uniform national regulation of the non-bank mortgage industry, following a 20 per cent increase in consumer complaints. He said key complaints were over brokers failing to disclose fees or commissions, delays in discharging or refinancing loans, or settlement dates not being met. Matthews said the scheme's effectiveness was being “stymied” because mortgage providers did not have to belong to the scheme. “It is quite frustrating for our case managers because we often find out late in the process that we don't have the power to mediate the issue,” he said. Mortgage Industry Association chief executive Phil Naylor attributed the higher number of complaints to increased awareness of the scheme.