ComCom's 3 applications per loan demand is 'crazy': FAMNZ

The Commerce Commission is sticking to its recommendation that mortgage advisers should have to submit three “actual offers” to every mortgage applicant, the Finance and Mortgage Advisers Association of New Zealand (FAMNZ) says.

The competition regulator is demanding that advisers agree to do this or it will “recommend government intervention,” FAMNZ country manager Leigh Hodgetts says.

The ComCom has written to FAMNZ making this demand which it claims will promote price competition and choice for home loans.

Hodgetts says if ComCom makes good on this threat, it will hurt consumers by driving up costs, blowing out application processing times and affecting customers’ credit ratings.