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The mortgage industry's peak body has distanced itself from the storm that has erupted over the ACCC review of compulsory MFAA membership for brokers.
Last week, the ACCC announced that it would review lender and brokerage third line notifications of requirements that brokers be a member of the MFAA. Submissions for the review are due to close at the end of the week.
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Branded brokerages Mortgage Choice and Aussie staunchly back compulsory membership for their brokers and franchisees, however, independent aggregation group AFG supports choice amongst its members.
MFAA chief executive Phil Naylor has been quick to distance the association from any move to enforce membership on brokers.
"Let me make one thing very clear. The discussion around whether or not MFAA membership should be compulsory was not started by the MFAA," Mr Naylor told The Adviser.
Mr Naylor said that the ACCC was simply conducting a review of the third line notifications currently used by Mortgage Choice and Aussie Home Loans.
"I think the whole thing is a bit of a media beat up," Mr Naylor said.
"This is a normal procedure. We are not saying MFAA membership should be compulsory, but I do think there are a lot of benefits in being a member," he said.
"The MFAA is increasing the standard of professionalism in the industry. By being associated with a peak industry group, you are letting consumers know that you are a broker of the utmost profession.
"Moreover, we are helping brokers meet the higher standards of education. In the New Year we will continue to advertise and do what we can to alert consumers to the benefits of dealing with a professional, MFAA accredited broker," Mr Naylor said.
The Adviser's Monday report sparked a flood of comments from brokers and more than 600 brokers voiced their opinion on mandatory MFAA membership for brokers on the latest poll.
Do you have an opinion on MFAA membership? Vote now on the latest straw poll or join in the debate and post your comments.
