ME Bank announces important changes
ME Bank has announced it will be making changes to how mortgage broker commissions will be calculated.
These changes are based on recommendations from the ASIC Broker Remuneration Review and Sedgwick Retail Banking Remuneration Review.
As of 1 December 2018, broker commissions on new home loan applications will be based on the amount drawn instead of the total approved amount.
This amount will also be calculated minus any offset facility.
To reflect these recommendations and in accordance with clause 9.4 of your ME Retail Lending Aggregator Engagement Agreement ("Agreement"), ME has changed Schedule 1 of our Agreement.
Please see attached the new and original versions of Schedule 1, which will vary your commission payment from ME and become effective from 1 December 2018.
Moving forward, the upfront commission will now be calculated six days from the settlement date, and the commission will be calculated on the drawn amount minus any funds held in any offset account by the customer in excess of $10,000.
Everything else in the Agreement, including the commission calculation for Top up Commission and Trail Commission, remains unchanged.