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With the implementation of the National Consumer Credit Protection legislation drawing ever closer, as much as a third of brokers may still be unprepared for the new requirements.
According to a recent Mortgage Business straw poll, only 66 per cent of brokers have already made the necessary preparations and are ready to register for an Australian Credit Licence on 1 November.
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Of the 416 respondents, 20 per cent have not made the necessary preparations and 14 per cent don’t know if they have done enough to meet the requirements.
Gadens Lawyers senior associate Elise Ivory told Mortgage Business that the industry needs approximately two and a half months to make the necessary preparations.
Bernie Lewis Home Loans managing director Mark Lewis said his company and brokers have already allocated that time and are now completely ready for the legislation.
Mr Lewis said there will be brokers or companies that are reluctant to make any changes, but the majority will review their documents and procedures in order to comply.
“I dare say many have already made the necessary adjustments and those that haven’t will inevitably fall by the way side – which is not necessarily a bad thing,” he said.
Mr Lewis said the MFAA’s decision to terminate 1,500 memberships was a great wake up call for the industry – many of whom have become complacent.
“I totally support the introduction of uniform regulations. At current, all the states operate under differing codes and I believe having one set of regulations will serve to promote professionalism in the industry,” he said.
“Until we have professional standards in place, we don’t have the right to call ourselves a professional.”
