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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

Wes 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.

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

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