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Mortgage broking in Australia is a fast-growing industry. With brokers now writing between 50 per cent and 53.7 per cent of all new mortgages, it is important that we acknowledge the need for producing quality new brokers who will become our future leaders.
New entrants to the mortgage industry do have to learn compliance and regulatory procedures as part of entering the industry.
The Certificate IV prerequisite is essential basic learning. The Diploma of Finance and Mortgage Broking Management can be added later.
These are necessary learnings but do not equip a broker for the industry. The current courses fail in distilling all the necessary learnings.
Unfortunately, only around 30 per cent of new brokers continue in year two. This massive fallout is evidence that the current system of learning is wrong.
There is so much more for a broker to learn than the home loan process and compliance.
The theoretical nature of lending, although important, is not able to provide a new broker with actual lending experience with real people. This significant aspect must be learned on the job in the same way an apprentice learns a trade. Experience is the most effective teacher in mortgage broking.
Having a knowledgeable mentor bridges this gap in learning and establishes guided real-world loan processes and interviews to be fashioned in a responsible way.
To have a successful career as a mortgage broker requires further important skills such as:
- Communication and negotiation skills
- Writing a business plan
- Setting goals
- Cross-selling
- Phone skills
- Obtaining referrals
- Developing referral partners
- Establishing a loyal customer base
- Cost-effective marketing
A good mentor will educate a new broker in dealing with clients in a trustworthy and service-oriented way, developing new brokers who care about a future in the industry.
It is not lack of experience that causes problems in our industry; it is lack of integrity and dishonest character. Having a mentor eliminates this type of character quickly and is in itself a cleansing process.
Although the MFAA does have a mentor program, it is not industry-wide. We should not allow differing standards of mentorship learnings. The industry has an obligation to uphold a high standard of education and training.
With some collaboration, an industry-recognised program could be developed by brokers for new brokers, with new compulsory milestones to be achieved within the two-year mentorship for all new brokers.
