Aussie Home Loans, has welcomed the Federal Government’s move to reform financial services and credit regulation.

Chairman of Aussie, Mr John Symond, said “While mortgage brokers and non bank lenders continue to play a very important role in the mortgage market, this sector is undermined by a number of under-qualified and, in some cases, unethical players.

“There is no doubt that both the major brokers and non-bank lenders have raised the bar in terms of ethics and controls, with accreditation and self regulation under the control of the Mortgage Finance Association of Australia, but we are let down by fringe players in the industry who prey on consumers.

“The current myriad of state regulations has made compliance difficult for all players and any streamlining of the rules and enforcement should be welcomed by the majority of the industry players, which provide up to 40 per cent of all mortgages in Australia”, he added.

Mr Symond urged Senator Nick Sherry, Minister for Superannuation and Corporate Law, to move quickly to implement his plans for reform to ensure the non bank industry continues to provide mortgage competition, despite the credit crisis.

He said, “I agree with the minister that the current regulations are very confusing and in many cases offer no protection to consumers - many of whom are being taken advantage of by unethical players in our industry.

“Uniform rules for mortgages enforced by a single national regulator like ASIC, together with industry bodies like the MFAA, will be beneficial to both customers and industry players”, concluded Mr Symond.