The franking credit issue is one for all stocks paying franking...

The franking credit issue is one for all stocks paying franking dividends - not an issue specific to Mortgage Choice. Bill Shorten says that his planned change will become effective 1st. July 2019 - I presume the rider there is that he becomes PM. First things first.

The current SP is reflecting a degree of caution relative to the Royal Commission's (RC) interest in mortgage brokers. At this stage the RC focus on mortgage brokers is one of conflict of interest, bonus commissions and "soft dollar" commissions such as overseas trips. The RC mortgage broker paper says "(it is) recognised mortgage broking plays an increasingly prominent role in the economy". It does not appear to be planning a complete scrapping of the commission structure. At present over 50% of loans are being written through mortgage brokers, which I believe is evidence that consumers are comfortable dealing with mortgage brokers and do so in preference to dealing direct with a lender. As I see it, the RC is unlikely to impose changes which would put the broking industry out of business nor force consumers to go to one lender/bank (with limited loan options). The current staffing structures of the banks would be inadequate to manage any significant increase in loan activity. Additionally this increased staffing requirement would add a significant cost impost onto the banks - I can see the bank share prices coming under pressure as a result. The broking industry gives the consumer choice and I believe also provides the consumer with the benefit of competition. What would the major banks be doing if there wasn't a broking industry - dare I say that home loan interest rates might be higher.

As for the current SP, yes, it is being adversely affected (current SP being $1.93), however, on 23rd. May last year the SP was only $2.02. The drop in the current SP can, in part, be put down to going ex dividend as well as a correction following the SP unexpectedly going up 29 cents over a 10 days period last month.

I am sure that the RC is cognisant of the fact that complete disruption in the finance sector (banks and mortgage brokers) would be detrimental to the economy, eventually spilling over into the superannuation sector.

These thoughts/ramblings are only MHO - do your own research.

Cheers