• Contact
  • Feedback
Banking Day
  • News
  • Topics
    • All Topics
    • Briefs
    • Major Banks
    • Authorised deposit-taking institutions
    • Insurance, funds and super
    • Payments, mobile & wallets
    • Consumer lending
    • Mortgages
    • Business lending
    • Finance regulation
    • Debt capital markets
    • Ratings agencies
    • Equity capital markets
    • Professional services
    • Work & career
    • Foreign news
    • Other topics
  • Free Trial
  • Subscribe
  • Resources
    • Industry events
  • About us
    • About Banking Day
    • Advertise
    • Feedback
    • Contact Banking Day
  • Search
  • Login
  • My account
    • Account settings
    • User Admin
    • Logout

Login or request a free trial

Trade-offs test Mortgage Choice

13 July 2018 5:43PM
Settlement volumes have slumped by around 10 per cent this financial year at Mortgage Choice, heightening the need for measures to pacify cranky franchisees, announced yesterday.Mortgage Choice spelled out "a new broker remuneration framework" five weeks after a series of joint reports by Fairfax and ABC aired details of conflict between the company's origination  network and head office. That included claims that, at the time, an estimated 50 per cent of franchisees were labelled as "low performers" that did not make their monthly targets.Key  features  of  the  new  model,  "which  will  be  offered  to  all  franchisees  on  an  opt?in  basis  from August 2018", include an increase in the average commission payout rate on residential lending from 65% to 74% and a "hybrid trail commission structure which pays the best monthly outcome on either a flow or book basis".Susan Mitchell, CEO of Mortgage Choice, said all of the broker franchisees were "likely to opt?in to the new model, as they will be better off financially.  The company said it "initiated a program to improve operating efficiencies across its business," but the bottom line is that it's profits will be much lower.Top level profit guidance yesterday for the year to June 2018 broadly matches the 2017 profit. But, and it's a big but: "As a result of the changes being introduced,  there will be a one?off, non?cash, negative adjustment of approximately $30 million," Mortgage Choice said.In 2019 the profit may be "approximately $16.5 million." The company's results will be released to the market on 21 August 2018.

I'm a returning subscriber

*
Password reset *
Login

Request a free trial

  • Emailing you the news at 7am.
  • Covering core lending and funding issues, strategy, payments, regulation, risk management, IT, marketing and more.
  • Original news and summaries of major stories from other media – ditch your newspaper subscriptions.
  • Focused on banking and finance, saving you the time spent wading through newspapers and other services.
  • With reporting from former editors and senior writers from the AFR and The Australian.
  • Configured for your phone, laptop and PC.
Free trial Banking Day

Consumer lending

  • Latitude, Harvey Norman liable for interest free GO card con

Copyright © WorkDay Media 2003-2025.

Banking Day is a WorkDay Media publication

WorkDay Media Unit Trust

  • Privacy policy
  • Terms of access and use