Adelaide Bank has announced its clawback structure to mortgage managers, but has not yet decided on clawbacks in the broker space.

In a communication to mortgage managers, the bank has outlined a structure consisting of two options. Under one option, mortgage managers will keep their current position of marginisation and upfront payments, while seeing clawbacks extended over four years. Loans discharged in the first year will trigger a 100% clawback, with the clawback falling to 50% from 13-24 months, 25% from 25-36 months and 15% from 37-48 months.

The second clawback structure will see 100% clawbacks on loans discharged within the first 12 months, and no clawbacks thereafter. However, it will require mortgage managers to increase their marginisation rates.

Adelaide Bank head of mortgage management Rob Morrison has commented that mortgage managers seem comfortable with the position, as the move was "well socialised" prior to announcement. Australian First Mortgage director Iain Forbes has agreed, and told Australian BrokerNews he considers the structure a good compromise. Forbes said AFM, which is funded by Adelaide Bank, will take the option of reduced margins and a 100% clawback within the first 12 months.

"As far as we're concerned it's an excellent offer. There will be a decrease in our margins; however, we think it's the perfect compromise," Forbes said.

Forbes said AFM will pass the same clawback structure on to brokers, but will make no other changes to broker commissions.

"There will be no reduction in commissions to brokers. There will be a 100% clawback in the first 12 months. We can't absorb it at the end of the day. It's too much for us to carry. At the end of the day there will have to be clawbacks, but they're shared by both parties. We lose some income and the broker loses some income," Forbes said.

"The good thing is after 12 months, there's no clawback. It will only be for the first 12 months," he added.

While the bank has now made public its clawback structure for mortgage managers, Morrison said a decision on broker clawbacks is still several weeks away.