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Jessica Darnbrough
A majority of brokers believe MFAA membership should not be compulsory, according to a new industry poll.
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The Adviser's latest weekly straw poll found 86 per cent of brokers do not support mandatory membership to the MFAA, while just 14 per said it should be.
The findings of the poll follow the ACCC's announcement that it would review lender and brokerage third line notifications that require brokers be a member of the MFAA.
Branded brokerages Mortgage Choice and Aussie staunchly back compulsory membership for their brokers and franchisees, however, independent aggregation group AFG supports choice for its members.
The Adviser was inundated with responses from brokers who argued both for and against compulsory membership of the MFAA, with more than 1,000 people taking part in the online poll.
Mortgage broker Bill Smith said brokers should be allowed to choose whether or not they want to be part of the MFAA.
"If the ACCC can disqualify a broker... then why on earth should we be compulsory members?," he said.
"Having been in the industry for over five years I can't recall anything that the MFAA has done to assist me, surely if we are now all 'controlled' by ASIC that must count for something, especially as we all contribute in some way to an annual ASIC fee.
"ASIC controls everything we do so why not just have ASIC membership? Even when I first started not one customer asked to see my membership – granted I belong to a big well known group – but how does the customer know for sure who they are dealing with. Why not just give us all a membership card from ASIC?"
Les Scott, also a broker, agreed and said his Australian Credit Licence should be enough to keep lenders and aggregators happy.
"We are a member of MFAA and appreciate the service they provide, however that membership should not be compulsory. Now that we have to be licensed by ASIC, our Australian Credit Licence should be sufficient for our lenders and aggregators," Mr Scott said.
But while the majority of brokers are staunchly against compulsory membership, a number argue that MFAA membership is not only good for brokers, but good for the industry as a whole.
Mortgage broker Jeff Purcell said being a member of the MFAA gave brokers credibility in front of borrowers.
"I don't believe the ACCC or any government department will be provided sufficient funding to police the industry, they will need help. The MFAA is not afraid to flick brokers/take action and nor should they.
"We all benefit by way of MFAA or FBAA membership. Let's not forget it is the customers who are important to all of us, so I don't understand all the reticence in belonging to a strong association. I am happy to pay my money to the MFAA to ensure a level and honest playing field," Mr Purcell said.
"You can always put your name forward at election times for a board position or committee position so you can have input. The public are very aware of association memberships and find a degree of comfort dealing with an association member. At the end of the day cancel compulsory membership and we are right back where we started from and no one wants to go there."
