Non-bank margins may be unviable as a result of the government's ban on exit fees, Aussie CEO Stephen Porges has claimed.

Porges said he expected a blow to volumes as Aussie and other non-bank lenders are forced to increase up-front fees as a result of the ban, and questioned how some smaller lenders would survive.

"We're probably the most competitive of the non-banks at the moment, and we're doing that on a very thin margin, so I think others will struggle," Porges said.

Porges said Aussie has yet to make any moves in response to the ban, but conceded that clawbacks may have to be instituted in the future. As many non-banks and mortgage managers have already introduced clawbacks, Porges predicted the rest would eventually follow suit.

"I would be astounded if people don't bring in increased clawbacks as a result. Logic dictates that we'll have to at some time," he commented.

In spite of some other non-banks now espousing the benefits of the ban, Porges said he does not see a silver lining in the legislation.

"I do not see a single benefit in this," he commented.

Porges also refuted claims recent fee increases on Aussie's Optimizer product line are a reaction to the exit fee ban.

Media reports have drawn parallels between the introduction of the government's exit fee ban and increases in up-front fees for some lenders, including Aussie Home Loans. However, Aussie CEO Stephen Porges told Australian BrokerNews the fee increase, which brings application fees on the products from between $250 and $500 to a flat $600, was not related to the regulation.

"The increase in fees is not really a response, and it wasn't really an increase. Some went up, some went down, so we're basically just aligning them. The application fee is waived right now anyway," Porges said.