Brokers flock to the FBAA in protest of accreditation practices
By
Luke Cornish
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15/03/2010 6:00:00 AM
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5
comments
A significant number of brokers have joined the FBAA in the past week in response to the industry body’s strong stance on lender accreditation practices.
While exact numbers are still to be confirmed, it is believed that hundreds of brokers have joined the FBAA which has painted itself as the only independent industry body that represents brokers.
“We don’t rely on support from banks or sponsors so we are able to only look after the interests of our members,” FBAA president Peter White said.
In a four-page editorial in its membership magazine, senior vice president Ron Guthrie issued a call-to-arms to brokers, asking them to provide information on how their business is shared amongst lenders and asking them to rate lenders on service, products and broker friendliness.
One question in the survey asks brokers if they think the majors are trying to “manipulate, control and weaken the broker industry”.
White said the survey would enable the FBAA to gather information before deciding how to proceed. He said he is looking for a long-term commitment from lenders not to cut trails or upfront commissions.
“They’ve been making billions of dollars and the only thing we’ve heard from them is that there won’t be cuts in the near future or in the next 12 months,” White said.
Latest Comments
Total:
5
comment(s)
Sophia on
16 Mar 2010 05:03 PM
Keep up the good work FBAA. Brokers were watching as the MFAA recently announced a non-quantity based proposal re broker accreditation with lenders, it was big news for the MFAA in its rare and noble cause for its broker members. CBA however in a subsequent press release on the subject swished the MFAA proposal away, like a wave of the hand swishes away a pesty blow-fly. Did the MFAA show some backbone and solidly respond to CBA''s rejection of the meritorious MFAA proposal? It appears not as instead we see that the MFAA reduced itself (and all of its broker members) to a ''door-mat'' response through the MFAA announcement of the inclusion of a quantity-based disclaimer statement as follows: "Some lenders may require us to submit a certain number of loans to them per month in order to retain our accreditation with them." In failing to continue to address the obvious problems(e.g. the undermining of the whole broker proposition to promote choice and service to consumers) in quantity-based lender accreditation, the MFAA has let down its 1000''s of broker members and many more 1000''s of Australian consumers.
Broker on
17 Mar 2010 12:29 AM
You are spot on Sophia, and what does the MFAA have to say to us brokers in relation to this unethical outcome?....They obviously don''t feel we even deserve an explanation, other than the one we got from "which bank". I find it amazing that an organisation such as the MFAA can collect annual fees from people that they don''t even represent....self serving at best.
Richard on
29 Mar 2010 04:53 PM
True representation is all that brokers want hence the obvious move to FBAA Whilst realising the difficulties faced with the arrogant attitude of some lenders there is nothing to stop brokers from sourcing lenders that do not place volume restrictions on them and most importantly looking after their clients interest at the same time We keep asking how can they get away with it I do not believe that there has been enough media exposure to their practices We keep getting told that we are being "supported" I feel quite the opposite some service levels are atrocious
Greg6547 on
31 Mar 2010 02:59 PM
You are correct Richard, As long as you smile in this industry you can get away with anything. Longer clawback periods, no control over whether a client stays with the bank or not, lower upfronts/trails, higher volumes AND internal refinances at the earliest opportunity. The big banks are behind us alright but they keep telling us to bend over ..... support the non-bank lenders - their rates are lower, they pay good commissions, their rates are marketable and they want to help brokers.
Dave on
01 Apr 2010 11:41 AM
Surprised any of you guys are still in the industry if it was a bad as you all make out. Just remember it could be worse, it''s easy to blame other people for your situation and if you want to make a difference get involved in the MFAA and the FBAA get a hands on feeling.