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The FBAA has welcomed an ASIC review of broking practices around interest-only loans after the regulator raised concerns at the association’s national conference last week.
Speaking at the FBAA conference at the Gold Coast last Friday, ASIC senior executive leader Michael Saadat raised concerns about the consequences of brokers shifting business to lenders that require less information and checks.
FBAA chief executive Peter White said it is only fair that a mirror is held up to broking practices regarding interest-only loans after ASIC conducted a similar review earlier this year.
“Lenders make the loan and lending rules that brokers must follow and in line with the brokers’ own responsible lending obligations,” he said.
“The vast majority are not intentionally breaking the law and are applying responsible lending considerations to the loans they arrange for borrowers.
“At all times, brokers have the borrower's best interests at heart while also being aware of the borrower's desires which are not the influencing factor as they are not always in line with responsible lending obligations.”
Mr White said he had been in constant talks with industry leaders and regulators about broking practices during 2015 and vowed to continue to keep the dialogue open into the new year.
“This is all about education on both sides, but from our end it is vital we continue showing them how we work and the practices we have in place to eliminate any need for potential restrictive or more stringent regulation,” he said.
[Related: ASIC launches interest-only tools]
