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MFAA defends brokers against Fairfax, again

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Julia Corderoy | 27 May 2016, 08:00 AM Agree 0
The MFAA has called out the AFR after it claimed standards in the mortgage broking industry continue to lag behind other sectors
  • A Premium Broker | 27 May 2016, 09:13 AM Agree 0
    I believe a lot of clients would choose a free branch service over a broker if Brokers had to charge a fee for service.

    The fee Brokers are paid replaces the fee lenders would need to pay their own staff ie lenders need less sales staff.

    The AFR article claims that brokers could be influenced by the amount of commission that they receive, however the alternative is that the client will visit a branch where the bank manager is contractually obliged to offer the client no choice at all. They are 100% influenced by the commission/pay that they receive from their employer.

    As an employee of the bank their first obligation is to their employer and the shareholders of the bank.

    The whole argument is ludicrous. Brokers offer a better service with more options.

    Without loyal clients and word of mouth referrals, brokers would be out of business, and that is why all the brokers I know put their clients best interests first.

    Good on the MFAA for sticking up for us.
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