In Australia, the mortgage broking industry is primarily regulated by Australian Securities & Investment Commission (ASIC) and under the National Consumer Credit Protection Act (NCCP). The NCCP regulates the activities of persons who engage in credit activities including providing credit assistance to a consumer and acting as an intermediary (which includes providing wholesale mortgage broker services).
Mortgage Brokers must hold either an Australian Credit License (ACL) or be a credit representative of a licensee (aggregator). Mortgage aggregators, dealer groups and even franchise groups act as a wholesaler between lenders and mortgage brokers.
The NCCP Act sets out responsible lending obligations that apply to the licensee when credit assistance is provided to a consumer in relation to a credit contract. The responsible lending obligations include requirements to provide a credit guide to the consumer, to make reasonable inquiries about the consumer and to make a preliminary assessment of whether the proposed credit contract will be unsuitable for the consumer.
ASIC is one the regulators with oversight of credit providers and the mortgage industry more generally. It is focused on consumer protection issues in the context of personal credit products, ranging from small amount credit contracts through to home loans.
In addition, APRA oversees banks, credit unions, building societies, general insurance, health insurance, reinsurance companies, life insurance, friendly societies and most members of the superannuation industry. While brokers are not regulated by APRA, APRA directly oversees the lending panel.