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The head of the MFAA has welcomed the government’s announcement on resetting the CDR regime.
Following an announcement from Assistant Treasurer Stephen Jones MP on Friday (9 August), CEO of the Mortgage & Finance Association of Australia, Anja Pannek, has welcomed the government’s decision to reassess the Consumer Data Right (CDR) regime.
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Minister Jones said at the time that CDR has the “potential to deliver real economic transformation” and the Albanese government seeks to resolve the issues presented by the former government’s “poor execution” of the regime.
“It is clear both sides of Government want CDR to be successful for consumers,” Pannek said.
“We see CDR as a critical part of the future of our industry and the experience of a consumer working with their mortgage broker as their trusted adviser.”
According to Pannek, the association has been “encouraged by the greater take-up” of CDR recently by brokers, aggregators, and lenders.
“The development over the last six to nine months of products specifically for brokers has also been encouraging,” she said.
“The benefits of these products include an easier and safer way for a broker to collect information from their clients for their home loan application and making it easier for a broker to reprice and refinance their clients’ loans.
“The Assistant Treasurer invited industry to highlight these valuable ‘use cases for CDR’, which we will continue to do as the industry’s peak body. We continue to encourage the Government to remove roadblocks around CDR usage as well. This will allow brokers to unlock the value of the CDR for the benefit of their clients.”
Pannek noted the “strongest words so far” from Minister Jones in regard to the banning of screen scraping.
“Further to our advocacy on CDR, we continue to advocate for a seamless transition between the two technologies,” Pannek said.
“CDR is already proving to be safer, easier, faster and a better experience for consumers. As an industry, we need to be thinking about the transition from screen-scraping to CDR a bit like moving from chequebooks to tap and pay.”
According to the Assistant Treasurer, the federal government is focused on getting the “existing CDR framework on more sustainable footing” and that the government will not rush to declare new action types until “CDR is back on track” after the passage of the action initiation bill.
“The Government encourages all interested parties to make a submission in response to the consultation paper for the proposed changes to consent and operational rules, which can be found on the Treasury website,” Minister Jones said.
Submissions will close on 9 September 2024, the Albanese government has confirmed.
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