Mike Pero Mortgage's (MPM) shares dropped more than 5% after Westpac became the latest bank to review its commission payments to brokers.
Tuesday, August 23rd 2005, 7:35AM
by The Landlord
The mortgage broking business said Westpac had decided to drop ongoing trail commissions of 0.2% on loans.
The ANZ and ANZ-National Banks reviewed commissions as well earlier this year.
Westpac increased its up front commission rate from 0.6% to 0.75% of the value of the loan and added in an extra 0.1% at-risk performance commission.
MPM said, all things being equal, the change would increase the company's revenue in the first full year under the new arrangement.
"Beyond that the outcome is less certain and will be dependent on a number of different factors including our mix of business among different lenders and the rate of growth in mortgages arranged," the company said.
