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ISCOVER
Staff Reporter
The number of mortgage brokers expelled from the MFAA doubled during the 2011/2012 financial year, new data has revealed.
According to a statement by the MFAA, the expelled brokers were all found by the MFAA’s Disciplinary Tribunal to have engaged in “serious misconduct” through submitting fraudulent loan applications to lenders.
MFAA chief executive Phil Naylor said while just eight members had been expelled in total – a miniscule number compared to the 11,200 members – the increase in expulsions is concerning.
“The increased expulsions demonstrate the MFAA’s determination to ensure the highest professional standards on our members, as well as a strict and independent disciplinary procedure and very high education standards,” he said.
The MFAA has a set of disciplinary rules to deal with complaints of alleged misconduct against an MFAA member, initially involving an external investigating officer, who then may refer the matter to the MFAA Tribunal. The MFAA Tribunal has the power to impose various sanctions on a member for misconduct, including expulsion from membership of the MFAA.
Mr Naylor said while it was heartening to see that so few members had been expelled, MFAA was determined to ensure a high standard of professional conduct by its members notwithstanding the fact that the National Consumer Credit Protection Act, enforced by ASIC, had come into force in 2011.
“Mortgage brokers are now a vital channel for home loans, providing greater customer choice and competition in the market, with a 42 per cent share of the mortgage market. On this basis, we need to enforce strict rules on our members to ensure they deliver the best possible service and customer protection,” he said.
“We expect that the mortgage broker share of the market will expand further this year and the MFAA will continue to be vigilant in weeding out the very few rotten apples in the industry.”
