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The MFAA will seek to define the characteristics of a professional broker, which it hopes will prompt lenders to “discontinue accreditation programs that focus on volumes”.
Many lenders have opted for minimum volume or loan settlement requirements to ensure quality business from brokers.
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But according to the MFAA quantity should not be seen as a surrogate for quality.
The industry body will look to define its members as ‘professional credit advisors’ and operate at higher education/experience standards than required by impending legislation.
Amongst the 11 requirements to become a professional credit advisor, brokers must acquire a certificate IV in Financial Services, complete 30 hours of CPD each year; have a conversion ratio of 65 per cent and accreditation with a panel of at least 10 lenders.
They must also demonstrate they settle at least six loans per quarter.
PLAN chief executive officer Ray Hair said he supported the MFAA’s definition of a ‘professional credit advisor’.
“Professionalism should be defined by a broker’s knowledge, expertise and years in the field, rather than the number of loans they turn over with each lender,” Mr Hair told Mortgage Business.
“That said, I understand that professional brokers also need to be efficient and that is why the MFAA has included the minimum conversion rate requirement.”
Mr Hair said the proposed characteristics wee very attainable for a professional broker that is serious about their career.
Carnegie Morgan Hill finance’s head of finance Kurt Armbruster agreed and said the extra requirements would serve to create a high level of professionalism in the industry.
“Most brokers that are serious about their profession, will have no trouble completing the requirements proposed by the MFAA,” Mr Armbruster told Mortgage Business.
“Current MFAA members are already license ready, so these proposed ‘professional’ characteristics are the MFAA’s way of differentiating its members from every other broker in the industry.”
Mr Armbruster said now, more than ever, it was important for brokers to be aligned with a professional entity.
“Being an MFAA member immediately tells my customers that I am part of an elite group that can, without hesitation, call ourselves professional.”
