Last week, ASIC announced it would use “hundreds of undercover shoppers” to monitor lending behaviour of mortgage brokers.

“As part of our ongoing review of mortgage broking practices, we are undertaking consumer and broker research to better understand the home loan purchase process,” said Michael Saadat, ASIC senior executive.

According to the report, ASIC is keen to understand “whether broker advice results in good outcomes and whether borrowers are making an informed choice and being sold products that meet their needs”.

This move reiterates the absolute importance of engaging in responsible lending practices. When referring clients to the bank for consumer loans, you, as an ACL holder/representative, are engaging in credit assistance and must therefore act in accordance with ASIC’s “Responsible Lending Guidelines”. If you have any questions about your obligations, feel free to connect with a ProLoan team member to discuss.