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ISCOVER
We take a look at some of the biggest headlines of the year that impacted the mortgage and finance broking industry.
January
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Finsure contests payroll tax ruling
Finsure Group (Finsure) launched action in the NSW Supreme Court against Revenue NSW regarding the application of payroll tax for some brokers. The aggregator confirmed it would be taking court action against Revenue NSW’s decision to retrospectively apply a payroll tax on mortgage and finance broker commissions.
February
Tribunal overturns ANZ/Suncorp merger decision
The Australian Competition Tribunal overturned the Australian Competition and Consumer Commission’s (ACCC) decision to block the merger between ANZ and non-major bank Suncorp. This decision paved the way for the acquisition to proceed after some initial concerns from the consumer regulator. ANZ and Suncorp eventually completed the merger in August.
March 2024
Bankwest transforms into fully digital bank
Bankwest announced its decision to become a fully digital bank, prioritising investment in the broker channel. At the time of the announcement, the CBA-owned lender originated around 90 per cent of its home loans through the broker channel, and 97 per cent of transactions by Bankwest customers were serviced digitally.
April 2024
Judge finds payroll tax ‘payable’ in Loan Market case
The Supreme Court of NSW ruled in favour of Revenue NSW in the long-running court case between Loan Market Group (LMG) and the government office on the application of payroll tax to certain brokers. In his judgment, Justice Richmond found payroll tax payable on payments passed through the aggregator to individual operators in certain instances.
May 2024
Broker market share hits record high
Mortgage and Finance Association of Australia (MFAA) data revealed mortgage broker market share had reached its highest point on record, with the third-party channel responsible for 74.1 per cent of all new loans between January and March 2024. However, this record wouldn’t last long. In December, the MFAA released data showing mortgage broker share had again risen, reaching a new record of 74.6 per cent of all new home loans in the three months to September 2024.
June 2024
Vow Financial rebrands as YBR Aggregation
Yellow Brick Road (YBR) Group confirmed its wholesale aggregation offering, Vow Financial, would be rebranded to YBR Aggregation. Described by the group as “a long time coming”, the move was designed to provide a unified brand identity for YBR’s aggregation services and home loan services while “boosting visibility and awareness” of the group’s broker network.
July 2024
ASIC cops criticism from Senate inquiry
The Senate economics references committee handed down its findings in relation to its two-year inquiry into the Australian Securities and Investments Commission (ASIC). In its report, the committee said the regulatory body was overstretched, failing to meet its core function and in desperate need of overhauls, delivering a series of recommendations for reform.
August 2024
BOQ ‘pauses’ broker channel for home loans
Bank of Queensland (BOQ) “paused” new-to-bank home loans from the end of August, the second time the bank has pulled out of broker originations for mortgages in as many decades (having pulled out in 2004 and returned in 2012). The lender said that “this is not an exit”, but rather part of “ongoing efforts to strengthen and optimise the bank in response to market conditions”.
September 2024
Mutual banks call merger off
Police & Nurses Limited (P&N) revealed that it “decided not to proceed” with the proposed merger with Beyond Bank Australia, following a due diligence process that determined progressing with the merger was not in the best interests of its members.
October 2024
LMG announces CEO changes
LMG tweaked its leadership structure with two new CEO positions. David McQueen – the group’s former chief risk officer and group executive for strategic partnerships – was named CEO of Loan Market’s brokerage brand. The group also confirmed a second CEO will be appointed to lead LMG’s wholesale aggregation offering.
November 2024
NAB shifts focus to proprietary lending
National Australia Bank (NAB) revealed a new focus on proprietary lending when it released its full-year results for the financial year ending September 2024 (FY24). The major bank said it would invest in its banker sales force to “grow share of proprietary lending”.
December 2024
Senator Bragg addresses brokers
The chair of the Senate inquiry into the financial regulatory framework and home ownership addressed brokers at an MFAA event to present and unpack the findings of the final report. Senator Andrew Bragg lamented at what he described as a current “housing crisis” and stressed the need for reforms to help first home buyers. He told the MFAA members that he believed the 3 per cent buffer was “creating some perverse and ridiculous outcomes”.
Senator Bragg said: “So, we think that the scope for a first home buyer buffer being lower than everyone else makes good sense. And frankly, there’s no way that it could be argued that it would increase any systemic risk as a proportion of the overall book.”
What to look out for in 2024
Federal election – Australians will head to the polls in the first half of 2025, with a federal election due to occur before 17 May.
Better Business Summit and Awards – The award-winning event returns for its 12th consecutive year. For more information, click here.
[Related: 2022: The year in review]
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