Under the Best Interests Duty obligations, a lender cannot clawback commission from aggregators and mortgage brokers after more than two years from the first day the loan was drawn by the customer. In addition, mortgage brokers are not permitted to recover a commission clawback from their customers.

An interesting observation on lender behavior is that some lenders may have a policy whereby clawbacks can be applied to an internal refinance. In some instances, with no time limit.

So that your business isn’t surprised, it’s important to refer to individual lender policies and Connective’s commission guide in Mercury Nexus to ensure you are clear on the period in which a clawback can be applied to an internal refinance.

The prohibition of the passing on of any clawbacks to your customers should not stop you from acting in their best interests.