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Brokers have already seen their commission incomes slashed 30%, and now they face the prospect of having to pay some of what's left back.
Another lender has come forward admitting clawbacks will be a reality under the DEF ban.
Non-bank lender Homeloans has confirmed it will institute clawbacks as a result of the unilateral ban on exit fees.
General manager for third-party distribution Tony Carn told Australian BrokerNews that the exact structure of the clawback arrangement is still not decided on, but it will be introduced "in some format".
He added that commission alternatives would be offered where no clawback is applicable.
Carn was not expecting a significant broker backlash. Rather he said high DEFs have kept some brokers away from non-bank lenders, and their removal could trigger a reversal in that situation.
Meanwhile, speaking to The Adviser Barnes Home Loans executive director Janelle Rayner said in spite of the non-banks having tended to pay higher commissions, without the protection of deferred establishment fees upfront commissions may need to be reviewed.
In addition she said product choice may also be reduced as a result of the ban on exit fees.
"We have done an analysis across our niche product range, and low doc clients tend to refinance in their second or third year. Higher establishment fees may eventually be introduced for these types of loans," she said.
Best broker business in five quarters - Rate relief has combined with a more competitive mortgage market to push up broker volumes, new research has found.
Too Smart: Wayne Swan follows ban with RMBS injection - FirstMac's chief executive Kim Cannon has lauded Wayne Swan's decision to pump an additional $4 billion into the Residential Mortgage Backed securities (RMBS) market.
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