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The MFAA says it is concerned about the implementation of lenders’ minimum volume requirements and is looking to find a better solution for determining lender broker partnerships.
In recent weeks several lenders have announced new minimum volume conditions for brokers with a view to terminate the accreditations of brokers who fail to lodge the required volumes.
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Phil Naylor, CEO of the MFAA, told Mortgage Business he understood the rationalisation behind such strategies in terms of lenders wanting to focus on working with those brokers who write sizeable volumes.
However he said such strategies were challenging the role of the broker.
“It does make it difficult for a broker to demonstrate the value of their proposition to borrowers,” he said.
Mr Naylor said the MFAA had been discussing the issue with lenders and was looking to find a better solution.
“We are trying to work out how the industry can overcome this problem from both the point of view of the brokers and lenders, including looking at ways in which lenders might be able to shape their broker selection criteria that are not volume related.”
