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Lenders 'acting as God' but nothing can be done, broker warns

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Australian Broker | 28 Apr 2014, 08:28 AM Agree 0
A broker who had his accreditation cancelled by a major bank which refused to give any reason is warning other brokers about their vulnerability in the hands of lenders
  • Dave Robinson | 28 Apr 2014, 08:59 AM Agree 0
    Would love to know who the aggregator is. Hope they aren't one of the many who state that they work for their members!!
  • Harry Myers | 28 Apr 2014, 09:05 AM Agree 0
    Good one MFAA. They will help the broker to get into the position of paying his MFAA fee but no further - I wonder if the lender is the MFAAs new sponsor.
  • Barney | 28 Apr 2014, 09:11 AM Agree 0
    The MFAA didn't offer to help?
    Get out of town!
  • Clarke Kent | 28 Apr 2014, 09:11 AM Agree 0
    In my opinion the MFAA should not be duck shoving this issue and should be taking the matter on for the broker who is a current member, these are fights you want support and MFAA have said not their problem. Very weak option in my view
  • Brado | 28 Apr 2014, 09:12 AM Agree 0
    If your aggregator wont help, maybe you should change to one that will....
  • Dissapointed | 28 Apr 2014, 09:14 AM Agree 0
    Would the new Privacy Laws assist the Broker under required disclosure
  • Broker with MFAA membership | 28 Apr 2014, 09:14 AM Agree 0
    I'm not sure why MFAA would not assist. I consider they align themselves to closely with the lenders and are don't want to upset them. It appears that this broker has been treated unfairly. Under what circumstances will MFAA question a lender?
  • SanityPrevails | 28 Apr 2014, 09:16 AM Agree 0
    Stay tuned folks, there is so much more to this story that is not being said!! The MFAA is really only a training organisation and only exist on the back of lender sponsorship, if the lender didn't enforce membership, would you pay the annual fee?
  • Bruce Cocks | 28 Apr 2014, 09:28 AM Agree 0
    I would certainly be changing aggregators AND joining FBAA.
  • Wilko | 28 Apr 2014, 09:30 AM Agree 0
    I'm Struggling with this. Accreditation is a contract between the lender and the broker. Personally, I would not want the MFAA involved unless it represented a broader industry issue. I would grab a solicitor and demand a letter of explanation with the right to take subsequent action if they could not justify their actions. If the Lender wont give a reason to anyone then how can they take any action?

    Seems to me there is more to this and will watch with interest.
  • Stedman | 28 Apr 2014, 09:36 AM Agree 0
    Firstly, For the MFAA its time to go!

    Please just name the aggregator and the lender. Then Brokers can take action so that they are in a position to withdraw their services from these organisations.
  • Country Broker | 28 Apr 2014, 09:50 AM Agree 0
    This seems like a restriction of trade , if the broker has done nothing wrong. The MFAA MUST get involved in these type of situations as should the brokers aggregator.
    If what the broker says is true and there is no fraud or misconduct involved it has implications for every broker.
    If the MFAA are not taking immediate action after being asked to it appears there is no misconduct or fraud , I am at a loss why they are NOT supporting the broker. Perhaps this broker needs to join the FBAA and change aggregators as well /
  • MelbBroker | 28 Apr 2014, 10:22 AM Agree 0
    It would seem the grievance is with the aggregator, as that's who the broker holds their agreement with.
    New privacy laws will make this very interesting.
  • Monty of Perth | 28 Apr 2014, 11:19 AM Agree 0
    The original notion for the very existence of Aggregators was to cover many issues, and low volumes were an essential reason of every Broker joining.
    My original Aggregator's agreement said their were no limitations on volumes, however Lenders haven't lived up to those lofty ideals. And yet most Aggegators are now owned by Lenders.
    We all know it's impossible to place every client with just one Lender, whilst retaining the true aim of being a Brokers, and that is Client's choice.
    Aggregators were established to smooth this pathway, they appear to have failed....
  • TomTom | 28 Apr 2014, 11:35 AM Agree 0
    Does anyone have anything positive to say about the MFAA?

    Seems not, so why are we paying them again?
  • Broker | 28 Apr 2014, 11:58 AM Agree 0
    Not good enough MFAA , but hardly surprising from this completely useless organisation.

    Members need to also stop complaining about the MFAA and instead join the FBAA.

  • Coast Broker | 28 Apr 2014, 01:52 PM Agree 0
    Think there is more to this story especially when the Lender and Aggregator are not mentioned. Aggregator I am sure would of been advised at the same time as the Broker if not before. Sounds like this Broker may not have a good relationship with their Aggregator. Stay tuned I am sure more will come out.
  • Banks are.... | 28 Apr 2014, 04:56 PM Agree 0
    The contract is between the Aggregator and the Financier.

    There is NO CONTRACT between the BROKER and FINANCIER.

    Aggregators WILL NOT disclose their contracts.

    Aggregators WILL NOT stand up for a sole Broker (I know I have been there).
  • Wilko | 28 Apr 2014, 10:22 PM Agree 0
    Can the jokes about recommending the FBAA stop now please. To say they are better than the MFAA is a joke in itself.

    This is not an MFAA matter. The aggregator is not standing up for their broker and if I was an industry association I would be asking why not?

    Seriously? We think the FBAA would do anything different . Please........
  • Michael | 29 Apr 2014, 12:55 AM Agree 0
    MFAA again the true colours come out. Mr Naylor do you see how many brokers aren't satisfied?? I for one have left and moved over to the FBAA. To the broker fight hard and don't give up until your satisfied. It happened to me and I got my way with them.
  • Dave Robinson | 29 Apr 2014, 08:02 AM Agree 0
    Banks Are...
    There are several aggregators who provide copies of their agreements with the lenders, only some hide.
  • John Whitten | 29 Apr 2014, 09:18 AM Agree 0
    This just shows the arrogance and the contempt certain banks show to brokers. Using the fairness rule, no one in their right mind, would consider that any bank not disclosing why they have cancelled the accreditation of a broker is fair. It is time that all banks were open in their dealings with brokers. If we with hold information from the banks they cancel accreditation, why should they with hold information from brokers. We hold nearly 50% of the market, treat us with contempt at your own peril.
  • Concerned Broker | 29 Apr 2014, 09:53 AM Agree 0
    Brokers need to request from their Aggregators details of dismissal/withdrawal of accreditation's procedures from Lenders and what remedies are available. Brokers need to know if there is "FAIRNESS" in dealing with Lender/Aggregator relationships. Clauses in contracts between Lenders & Aggregators, which directly affect Brokers must be clearly defined within Aggregator/Broker Agreements and what remedies are available. The Aggregators themselves have a duty of care to their Brokers.
  • John C | 30 Apr 2014, 10:29 AM Agree 0
    Well people there is a new Association out there who will look at this type of behaviour and provide resources and assistance to resolve these sorts of issues of bully boy tactics by major corporates, as this is not isolated to just the Finance Industry. If anyone is having any issues in this regard why don't you contact the Small Business Party of Australia (www.smallbusinessparty.org.au) and have a chat to Murray. His Executive position in this organisation is to provide the resources and support to the little guy/gal who does not have the resources to protect their position.
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