The target is almost one-third higher than the industry average and failure to meet it results in brokers being busted down the lowest commission tier for both their upfront and trail commissions. So-called “low performers” receive a trail commission of 26 per cent of revenue received and Mortgage Choice retains a margin of 74 per cent, which franchisees say is unfair and pushing many of them to the wall. The documents show there are also 39 “big guns” who settle more than $5.5 million a month in home loans and are rewarded with 82 per cent in commissions. Mortgage Choice chief executive Susan Mitchell Credit:AAP Mortgage Choice chief executive Susan Mitchell said the term “low performer” was an unfortunate phrase and had recently been changed.

She conceded the current model was outdated and the company got its balance “a little out”, and making it more competitive with the rest of the industry "was my first priority when I became chief executive two months ago." After being contacted about the media investigation, Mortgage Choice told the ASX on Monday morning it was reviewing its remuneration structure. “Mortgage Choice cares about our franchisees and works closely with them to assist them in growing successful businesses. We have policies in place to support any franchisee that approaches us in need of additional support. We have provided personalised assistance on a confidential basis to franchisees who have experienced financial difficulty, suffered health issues or had changes in their family circumstances,” Ms Mitchell said. Mortgage Choice broker Robyn Lang says brokers are being pushed into doing the wrong thing. Credit:Paul Jeffers The investigation showed as many as 173 franchisees were considering setting up a fighting fund to take legal action if the company doesn’t make the model fairer.

Robyn Lang is one of a number of franchisees who have spoken publicly despite fears of breaching her franchise agreement. She estimated she had lost hundreds of thousands of dollars, including the family home and retirement savings, after buying an existing Mortgage Choice franchise in 2005. “It was a very small franchise which meant we had a little bit of income coming in initially, to buffer things, and then we decided that we had the opportunity to really grow the business, if we invested, so we bought a shopfront and hired staff," she said. Then Mortgage Choice changed its commission rules during the global financial crisis in what was supposed to be an interim measure but which has remained in place.

As Ms Lang's debts racked up, she was forced to move back home and set up a home office. “The stress has taken its toll, anxiety was out of control, depression was out of control, I was on pretty strong doses of anti-depressants, I was just broken, exhausted and broken,” she said. Last year she sold the family home to pay off the debts. “My husband is 66 and wants to retire but he can’t,” she said.

She said the current model is structured so that brokers are forced to focus on upfront sales to make a decent commission. “When you have targets sitting behind you and you have a stick that is saying if you don’t meet this target you will be financially disadvantaged then it does create very much a pressure cooker situation where you are constantly looking at the numbers, counting the numbers, you’re looking at how much do I need to get this month to meet my target, because I need to make a certain number to make enough money to pay the bills,” she said. Ms Lang said she had 3500 people on her database of contacts which she struggled to service given the focus required on new loans. There’s fraud going on in the industry and there always has been but I would not be surprised if there wasn’t an increased level. Robyn Lang “The trail commission that I get, it’s not sufficient to survive off ... without writing new business and our focus has to be writing new business all the time. The time that we used to invest in servicing existing clients has just vanished," she said.

She said she has always looked after her clients and never cut corners, but she knows the model is pushing some to take short cuts. “There’s fraud going on in the industry and there always has been but I would not be surprised if there wasn’t an increased level, especially at the moment,” she said. Loading “Desperate people do desperate things.” Mortgage Choice said in a statement that the current model did not encourage poor behaviour or practices.