More Power, More Scrutiny: What Brokers Need to Know About ASIC’s Crackdown and Market Dominance

There’s never been a better time to be a mortgage broker, but there’s also never been more risk in getting it wrong.

Brokers are writing nearly 77% of all new home loans.

And with that comes attention.

From borrowers, sure. But more importantly, from ASIC.

We’ve always known compliance matters. But the recent Rams enforcement action proves that we’re in a new era – one where regulators aren’t just watching from afar. They’re stepping in, asking harder questions, and making examples.

And this time, it’s not just aggregators or large brands in the spotlight. It’s all of us.

The Rams Case Isn’t Just About Rams

If you haven’t seen the details, ASIC took action against RAMS Home Loans for failing to properly oversee credit representatives. The issue wasn’t some massive fraud scandal. It was a systems problem. A failure to monitor what was actually happening on the ground.

That’s the part that matters.

Because it means this: you don’t need to be reckless to end up on the wrong side of an audit. You just need to be disorganised.

Sloppy notes. Patchy documentation. Inconsistent file trails.

And suddenly, what looked like a minor oversight gets interpreted as a breach of duty.

You’re Not Just a Broker Anymore. You’re a Gatekeeper.

As brokers continue to grow in influence, ASIC sees us differently.

We’re not small businesses with a few files on the go. We’re a critical piece of the credit system.

When a broker makes a mistake, it ripples. It impacts lender trust, client outcomes, and the entire lending ecosystem. So naturally, when 3 out of 4 borrowers go through a broker, ASIC wants to know we’re up to the task.

That means the old excuses don’t hold anymore:

“I didn’t know the policy changed.”

“I forgot to upload that note.”

“I thought my VA handled it.”

They’re not just shrugged off. They’re red flags.

Because when your pipeline grows, so does your responsibility and the scrutiny that follows.

Where Most Brokers Get Caught

Here’s the thing. Most brokers aren’t trying to cut corners.

They are just too busy juggling 12 deals at once. Too busy chasing clients for docs. Too busy rechecking files manually because the last one had a typo that nearly derailed approval.

But busy doesn’t hold up in an audit.

And it’s often the smallest cracks that cause the biggest problems:

• A missing VOI on a file
• No audit trail for why lender B was chosen over lender A
• File notes that only live in your head
• Loan docs emailed to the wrong client (yep, that still happens)

You don’t notice these gaps when you’re in the day-to-day. But ASIC will.

And by the time you realise something’s off, it’s already a paper trail.

What Staying Audit-Ready Looks Like Now

Being compliant isn’t merely about filling out more forms. It’s about building habits and systems that hold up when the spotlight hits.

Here’s what that looks like in real terms:

• Every recommendation clearly documented and easy to find
• Consistent file structure for every client, every loan
• VAs who know what a compliant file looks like and know when to raise a flag
• A source of truth for lender policies, servicing rules, and NCCP logic that isn’t just a PDF on your desktop
• Task management systems that track the “why,” not just the “what”

It’s about building enough structure that when someone asks for a file you can hand it over and know it tells the full story.

The Tools That Keep You Off ASIC’s Radar

We’re not saying tech is the solution to everything. But when things speed up (and they are), manual systems won’t cut it.

Especially when your compliance obligations don’t slow down to match.

That’s where having the right VA and the right tech makes a real difference. Not just for efficiency, but for protection.

With the right VA, you get eyes on the details you don’t have time for. Someone who can manage checklists, follow-ups, file audits, and sanity checks before you hit submit.

With tools like the AI Broker, that gets even sharper. You’re not just relying on your memory or your VA’s inbox. You’re running each deal through AI that:

• Flags policy mismatches
• Generates branded submission-ready docs
• Cross-checks data for compliance gaps
• Keeps your CRM and docs in sync
• Trains your VA as they work so file quality only goes up

Real Leadership Looks Like Discipline

Every broker talks about scaling. About doing more deals, growing the pipeline, and expanding the team.

But growth without structure? That’s just speed with no brakes.

And when ASIC’s watching, speed with no brakes turns into risk.

The brokers who’ll thrive in this new era aren’t the ones who write the most loans or hire the most staff.

They’re the ones who build a business that’s clean, auditable, and defensible without losing momentum.

They know every file tells a story. They make sure it’s the right one.

If you’re not 100% sure your systems could stand up to scrutiny, now’s the time to check.

👉 [Book a Free Strategy Call] and see how the right support could help you spot cracks before the ASIC does.