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Jessica Darnbrough
A majority of mortgage brokers believe the industry associations have lost their relevance in the market and do not deliver tangible benefits to the third party distribution channel.
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According to a recent straw poll conducted by The Adviser, 72.3 per cent of respondents believed the industry associations do not currently offer what they should.
Of the 188 survey respondents, just 27.7 per cent said industry associations such as the FBAA and MFAA continue to remain relevant in today’s market.
wHeregroup’s Todd Hunter is one broker who believes the various industry associations are “fast” losing their relevance.
Mr Hunter says he doesn’t get “a lot” from his industry association in the way of support or benefits.
“I have been paying my fees for years and haven’t seen any benefits,” he says.
“There is a conference once a year, but on top of that I don’t really receive anything from my association. I don’t see them out in the public espousing the benefits of using a mortgage broker.
“I’m not sure what goes on behind closed doors. They may be constantly working with the government and ASIC to improve the working situation for brokers, but that gets no air play. They don’t tell you what they are doing. So, as far as I can tell, they don’t do a whole lot of anything.”
Mr Hunter said he wouldn’t be surprised to see lenders start dealing directly with brokers who are not MFAA- or FBAA-accredited in the future.
“As lenders get hungrier for business, I expect to see them open the gates and start working with brokers who are not members of the various industry associations,” he says.
“The lenders know the third party distribution channel is legislated and has certain responsible lending requirements to adhere to; as such, they will not feel any concern in dealing with those brokers who are not accredited.”
However, Aussie’s Matthew Rose says he doesn’t expect to see lenders dealing with brokers who are not accredited with either the MFAA or FBAA.
“I can’t see lenders taking that approach to business,” he says. “The industry associations do a good job as far as I am concerned. I am very happy with their services.
“They are committed to the industry and making sure there are no heinous requirements put on brokers.”
