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ISCOVER
By Jessica Darnbrough
Resi’s chief executive officer Lisa Montgomery has rejected claims the non-bank sector will suffer as a result of the government’s exit fee ban.
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Last month the government passed its proposed blanket ban on exit fees into law, sparking outrage across the mortgage industry.
Aussie executive director John Symond said the legislation was an “accident waiting to happen” and branded Treasurer Wayne Swan as “arrogant” and “incompetent”.
Mr Symond went on to say the legislation would negatively impact the exact sector the government was trying to support – the non-banks.
But Ms Montgomery said the non-bank sector was resilient and would not struggle to cope once the exit fee ban is enforced.
“The government’s exit fee ban is just another obstacle that the non-bank sector has to face and overcome. It is not anywhere near as dramatic as some people make out,” Ms Montgomery told The Adviser.
“There seems to be a common thought in the industry that the non-bank sector has to rush and put all their ducks in a row.
“This is simply not the case. We still have plenty of time to survey our options, be innovative and tweak our pricing and policy structure to suit the legislation.”
“The exit fee ban will not have a negative impact on competition or non-bank products.”
Ms Montogmery said the non-bank sector would have no problems overcoming this latest obstacle.
“We survived the GFC and emerged out the other side stronger for it,” she said.
“If we can survive that, we can survive this.”
