The MFAA ‘did the right thing’ by cancelling 1,100 broker memberships, says FBAA CEO, Peter White, but the idea that brokers should be forced to undertake the diploma is 'ridiculous'.
“I think the MFAA acted in accordance with what they said they were going to do and that’s the right thing. They kept pushing the date back and at some point they have to draw a line in the sand and obviously they’ve done that. I think it’s appropriate.”
However, this is where White's support of the MFAA's policy ends.
“To me, the diploma is a joke. You speak to anyone that goes to university – they’ll say it takes 2-3 years to get a diploma, not three to five days. Requiring brokers to take the diploma is garbage as far as I’m concerned.”
He says the FBAA, which doesn’t require its broker members to complete the course, feels the diploma isn’t well suited to new brokers in particular.
“It’s predominantly focused on business running, not on consumer lending; 75% of the course is not related to home loans. If you want to do the diploma because you think it will be beneficial to you, we support you 100%. We’re not against the diploma – I’m just against enforcing it…If you have been lending for 5-10 years and you do that course, I think it’s good value. But if you’ve never done any lending in your life, it’s ridiculous.”