“It’s not a bank, broker or referrer only issue, it’s a whole-of-industry challenge that requires a coordinated response,” Pannek said in comments sent to MPA.
“While this activity represents a small part of the market, it has outsized consequences. That’s why stronger collaboration and information sharing across brokers, aggregators, lenders and regulators is critical.”
Pannek said the MFAA has established an introducer and referrer working group, bringing together major banks and aggregation groups to address fraud risks in this part of the system.
Today, there are more than 22,000 mortgage brokers operating in Australia – one of the highest concentrations of brokers in the world.
They account for nearly 80% of new home home volumes, and are increasingly being entrusted by first-home buyers to guide them though the biggest financial decision of their lives.