Only days after its submission to the Australian Treasury consultation paper on unfair trading practices protections for small businesses, the Finance Brokers Association of Australia (FBAA) has commended ING for “taking an important step in the right direction.”

FBAA CEO Leo Gagic welcomed the lender’s changes to its clawback policy that eliminates clawback of broker commission after 12 months when the loan is discharged due to the sale of property.

Mr Gagic said ING’s new policy is a major move that should be followed by all lenders, but hopes that in the future the company will consider expanding it to include the first twelve months, as “brokers shouldn’t be penalised at all for reasons beyond their control.”

He also hailed ING’s broader relationship with mortgage brokers including its commitment that loans offered directly to customers are not at lower rates than those offered to the broking channel.

“Relationships like this are not only beneficial to both brokers and lenders, but to consumers through increased competition, better service and the knowledge that they will end up with the loan that best suits their circumstances,” he said.

Last week the FBAA announced it had contributed to the government’s consultation paper on unfair practices because the broking sector is made up predominantly of small businesses, and a broker’s livelihood and ability to function is inextricably linked to credit providers.

The submission listed clawback, net of offset, channel conflict, referrer arrangements and broker accreditation as areas that should be strengthened to better support brokers.

“We understand that these can be complex issues but I believe there is room for our industry to discuss these further with lenders,” Mr Gagic said.

“The relationship with lenders is important to me and the FBAA, and I want to always be considering ways we can do things better together.”

He said every step forward that makes it fairer for brokers is a good step, and “if other lenders do what ING has done, it’s a positive start.”