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Brokers were again the subject of negative media attention last month with Herald Sun columnist Scott Pape telling consumers to “steer clear” of brokers and their “expensive” products.
Mr Pape’s cautionary words followed a recent CHOICE report which claimed borrowers could save thousands by avoiding brokers – but failed to acknowledge the important role brokers play in the loan process.
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MFAA chief executive Phil Naylor moved quickly to quash both the Choice report and Mr Pape’s claims, with a sharply worded Letter to the Editor which was published in several papers.
Mr Naylor labelled Pape’s comments “ignorant” and said they revealed “a complete lack of understanding” about mortgage brokers and how they are paid.
But while Mr Naylor was disappointed by the attack, he remains confident that brokers are, by and large, viewed favourably by consumers.
“It does upset people [brokers] as it attacks their wellbeing and livelihood, but consumers do not appear to be taking notice of such claims and are still turning to brokers in their droves,” he said, pointing to research that suggested 40 per cent of borrowers continued to choose to brokers for their loans.
Brendan O’Donnell, the chief executive of Choice Aggregation Services, said misunderstanding of broker remuneration was to blame for negative media commentary such as Pape’s.
“The media, and potentially customers, are often misinformed as to how brokers are remunerated. The industry really needs to get on the front foot and make it clear just how broker remuneration works.”
Leadership from the MFAA was crucial to tackling the issue, he said.
Mr Naylor said the MFAA was committed to continuing its campaign to promote the broking industry in a positive light, and stressed that brokers remained high in consumers’ regard.
“Most members of the media do understand. It’s just the exceptions, such as this journalist, who don’t,” he said.
