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The MFAA has told a Senate inquiry there is no evidence to support accusations of “widespread misconduct” by brokers.
It also rejected what it said were allegations of “systematic falsification of details in loan applications”.
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The Senate is holding an inquiry into the performance of ASIC. In its submission, the MFAA said that while it took allegations of misconduct seriously, it had received very few substantiated complaints of broker misconduct.
The MFAA said it would be aware of any “widespread misconduct by brokers as asserted by the submissions to this inquiry” given that its membership included a majority of Australia’s mortgage and finance brokers.
The MFAA also said that the industry was more involved than consumers in stamping out unethical behaviour.
“It should be noted that the vast majority of expulsions from MFAA membership for false documentation and the like resulted from complaints by lenders believing they had approved loans based on false information, not from consumer complaints,” the submission stated.
“There is no evidence, from matters dealt with under the MFAA disciplinary process, of what seems to be asserted to be systematic falsification of details in loan applications.”
The MFAA also said it was “difficult to identify” whether the brokers accused of misconduct during the Senate inquiry were MFAA members.
