Brendan Burgess
Founder
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The Irish government has to transpose the Mortgage Credit Directive into Irish law. The Department of Finance has a consultation process on some issues where the government has discretion. This is one of the most important areas and I am keen to make a submission which would reflect all sides of the argument.
Discretion 7 – Member States may ban commissions paid by the creditor to credit intermediaries (Article 7.4)
Where creditors, credit intermediaries or appointed representatives provide advisory services to consumers the remuneration structure of the staff involved must not prejudice their ability to act in the consumer’s best interest. In particular, they must not be contingent on sales targets. In order to achieve this objective, Ireland may ban commissions paid by the creditor (Banks) to the credit intermediary (Mortgage Broker).
Consultation Question 7: Do you think that banks should not be allowed to pay commission to brokers? If so, why?
Discretion 8 – Payments by consumers to a mortgage provider or credit intermediary (broker) may be forbidden or restrictions may be imposed until the conclusion of a mortgage agreement (Article 7.5)
Consultation Question 8: Do you think such payments should be forbidden or restricted? If so, why?
Discretion 7 – Member States may ban commissions paid by the creditor to credit intermediaries (Article 7.4)
Where creditors, credit intermediaries or appointed representatives provide advisory services to consumers the remuneration structure of the staff involved must not prejudice their ability to act in the consumer’s best interest. In particular, they must not be contingent on sales targets. In order to achieve this objective, Ireland may ban commissions paid by the creditor (Banks) to the credit intermediary (Mortgage Broker).
Consultation Question 7: Do you think that banks should not be allowed to pay commission to brokers? If so, why?
Discretion 8 – Payments by consumers to a mortgage provider or credit intermediary (broker) may be forbidden or restrictions may be imposed until the conclusion of a mortgage agreement (Article 7.5)
Consultation Question 8: Do you think such payments should be forbidden or restricted? If so, why?