Assistant Governor of the Reserve Bank, Dr Phillip Lowe, speaking at the House of Representatives Economics Committee on 17 August 2007, has called for faster action on the regulation of the mortgage broking industry.
The regulation of consumer credit, which includes the activities of mortgage brokers, is a responsibility of the State and Territory Governments.
The Ministerial Council for Consumers Affairs agreed in September 2006 for a uniform approach to the regulation of mortgage brokers which would involve the imposition of licensing, conduct and disclosure requirements on brokers. The New South Wales Government was tasked to prepare a draft bill in collaboration with other states and territories for the regulation of the mortgage broking industry.
The Bill would be used by all the other States to apply in each jurisdiction to get uniform law in each of the States.
The Australian Government believes that the protection of consumers is of paramount importance and will do everything within its power to ensure that consumers have the strongest possible consumer protection framework.
It calls on the States to accelerate work on the licensing conduct and disclosure of mortgage brokers.