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why Commissioner Hayne wants mortgage brokers to charge fees

  • Written by Kevin Davis, Research Director of Australian Centre for FInancial Studies and Professor of Finance at Melbourne and Monash Universities, Australian Centre for Financial Studies
imageWes Mountain/The Conversation, CC BY-ND

The Royal Commission recommendation that mortgage broker commissions, currently paid by lenders, should be replaced by up-front fees paid by borrowers, has been controversial to say the least.

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Royal Commissioner Kenneth Hayne wanted to eliminate first the “trail”, or annual ongoing commission paid...

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