Mortgage Ezy CEO Garry Driscoll said careful modelling of its current and expected mortgage book show it will be able to maintain its 'no clawback' stand for brokers, bar any unforseen changes in the market.

Last week, Mortgage Ezy announced that it had removed DEFs as of 1 June, and that it would continue to provide competitive 'sub-7%' rates to customers and brokers, along with no clawback.

Speaking with Australian BrokerNews, Driscoll said the mortgage manager had closely calculated the mix of business being written historically, as well as the business it expects to receive post-July 1.

Driscoll said based on modelling, it had put mechanisms in place to mitigate the early refinance risk that had allowed it to remove DEFs and not extablish a clawback structure for brokers. "It is not a simple experience, but we looked at it closely, rather than just taking the simple option," Driscoll said.

However, Driscoll said the structure's continued viability would depend on the future of the market.

"Nobody knows what is going to happen to a book in the future. Once changes are made to DEF, we can only make assumptions and best guesses. But you won't see a great deal [of changes]," he said.

Driscoll said the first indications on the performance of its new structure will come in the first three months from July, which will be monitored for any spike in refinance activity.

He added that Mortgage Ezy's decision not to establish clawbacks was part of its "desire to be different".

"Clawback is something brokers really don't like; it's difficult to run a business when potentially after 18 months or two years you can get clawed back half the income earned two years earlier," he said. "Ever since we've started, we've tried to be different. We've always done that, and will continue to do that."

Mortgage Ezy is funded by lenders including ING Direct, Advantedge and Firstmac.