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Several brokers, including the 2016 Young Broker of the Year, have called on industry member associations to up their game, in the belief that “they could be doing a lot more to help benefit [brokers]”.
George Samios from MADD Loans, the leader of the 2016 30 Under Thirty ranking, said that he believes the industry member associations are not performing to their best ability.
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Mr Samios said: “I believe that our industry bodies should be fighting for fair commissions and should be assisting us with training. So, if there are better things we could be doing to run our businesses, then these people could possibly be offering training services for brokers if they need it.
“They should be offering new-to-industry brokers guidance and offering them mentorship — they could be saying: ‘Hey, get in touch with these FBAA or MFAA role models, which we have spoken with and know they are accredited with us as outstanding mortgage brokers who have some great processes and procedures. These individuals or companies are more than happy for you to ring them’, and see if they can be your mentor. Or they can help set up relationships by being a connector.”
As well as this, Mr Samios said that the associations could make professional development days and awards nights “a bit more fun an exciting”, adding “maybe not so much a lunch or a breakfast, but they should be something that includes guest speakers”.
He elaborated: “Why don't we get the best mortgage brokers in Australia to be speaking? Why do we have to get non-relevant industry people to be getting up there and talking rather than the industry's best, and get them to explain to mortgage brokers how they got so successful?
“I would love to get up on stage and help other mortgage brokers... but I've never been asked.”
Stating that the potential for what the associations could offer is “limitless”, he decried the lack of proactivity in the associations’ work.
He said: “They’re in a position where they have all the brokers going through them, and we all pay them our fees every year, and they could be doing a lot more to help benefit us.
“Why can't they advertise on TV? Why can't they advertise on radio and push people to go to a mortgage broker? They're in a position where they could be helping us.
“With all the money we pay them, I don't really see any money going on advertising for us.”
Peasy director Joel Wyld agreed with Mr Samios, telling The Adviser: "I think what the MFAA and FBAA need to do is really take an impartial approach. Let's say, someone is new to the industry; How do they pick the right aggregator? How do they know who's right for them? Could an aggregator tell them? Well, yeah... But it's like, hang on, do you actually want a... franchise or do you want to do your own thing? Do you want full service where you have access to a BDM, or would you prefer a flat fee model because you're going to have large transactions?
“The MFAA [and FBAA] could have a role to play in that, and potentially advertising. I'd love to see one day that there's a career path, where people at uni could look at becoming brokers.”
MFAA responds to criticism
The broker comments follow on from a straw poll which found that nearly 80 per cent of respondents believed that the performance of the Mortgage & Finance Association of Australia (MFAA) over the past year had been ‘poor’ or ‘very poor’.
Indeed, several brokers have taken to The Adviser to voice their frustration with the association, with some brokers slamming the MFAA’s report into broker commissioners (which highlighted the willingness of customers to pay for a fee-for-service), and others calling for ‘damage control’ after The Adviser revealed that one member of the MFAA’s lead team, Stephen Bisgrove, had resigned over his belief that the body wasn’t providing enough support to its brokers.
The MFAA responded to the criticism in The Adviser article, stating that 2016 had been a “difficult year” for the association and acknowledged that “member communication has suffered” as a result of “engagement with government” during a year of “unprecedented level of regulatory issues”.
However, chairman Cynthia Grisbrook said that the association will “redouble [its] efforts to communicate to members on the work [they] are doing on their behalf”, and “continue to address the series of reviews and inquiries facing the industry”.
Despite this reassurance, several brokers have voiced frustration that there has not been more “transparency”.
One commentator took to The Adviser website to write: “Transparency would involve the MFAA outlining what was said at the round tables, what was discussed with the ministers and what the lobbyists have done, but instead we get a selfie with the minister and three emails in one day all saying nothing...
“It's time our associations picked up the bat and ball and started playing OUR game not theirs. Without us [they] don't exist...
“What we need now more than ever are leaders, people who do what they say and say what they do, are positive and open, much like I found [former MFAA CEO] Ms Hayden."
[Related: MFAA responds to broker criticism]
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