Australia’s mortgage broking industry will fund a nationwide advertising blitz to push back against the threat of tough new regulations in the wake of the financial services royal commission.

Commissioner Kenneth Hayne’s interim report sparked concerns in the industry that mortgage broker payments would be overhauled, particularly around special commissions paid by banks to brokers for referring loans to them.

The report said so-called upfront and trailing commissions, which depended on the size and length of the loan, increased the likelihood of misconduct and risky borrowing.

Fees paid to home loan brokers are under fire. Credit:Rob Homer

“What is plain ... is that value-and volume-based remuneration for intermediaries in the home loan industry has been an important contributor to misconduct and conduct falling short of community standards and expectations,” Hayne's report said.