Dissatisfied MFAA brokers a minority: Kane

by Ben Abbott13 Feb 2012

MFAA president Steve Kane has hit back at critics of the value MFAA provides to members, saying these brokers are in fact in the minority among the association's membership.

In a recent Australian BrokerNews TV report , top brokers James Green of Oxygen Home Loans and Ian Jordan of The Selector Group questioned the value provided by MFAA.

However, Kane said an MFAA member engagement survey conducted in 2009 found that just under a quarter - or 22% of members - were dissatisfied with what the MFAA does to represent them.

"Fifty-one per cent were either completely satisfied or somewhat satisfied while 25 per cent were neutral," Kane said.

In the Australian BrokerNews TV report, both Green and Jordan say that while being an association member is important, other brokers they have spoken to feel the MFAA does not provide value.

The ACCC has recently been reviewing the third line forcing notifications of some broker groups and lenders that require mandatory MFAA membership, including Mortgage Choice and Aussie.

Kane said that it is the MFAA's position that membership is not mandatory.

"While we are aware two broker groups make this requirement under ACCC authorisation many other broking groups and aggregators and lenders simply require membership of a professional industry body," Kane said. 

"MFAA’s total focus is on providing value to members so they want to join and retain membership."

Kane has also defended the accusation that confusion remains over whether the MFAA represents banks or brokers.

"The Strategic Review of MFAA operations in 2009 indicated that MFAA represents brokers, aggregators and mortgage managers. This was based on member surveys seeking attitudes as to who MFAA should represent.  This group represents 99% of the MFAA membership," Kane explained.

"While we accept membership from other stakeholders – for example lenders, mortgage insurers, lawyers and valuers - MFAA does not represent them. They have their own associations," he said.

Kane said the MFAA governance structure ensures that these stakeholders cannot dictate MFAA policy or actions.

"The MFAA Constitution mandates that MFAA State Councils must be made up of at least 70% brokers or mortgage managers," Kane said.

"On the MFAA Board of 12 persons, which is our decision making body, brokers, mortgage managers and aggregators comprise nine people. The remainder include one lender, one lawyer and one independent director," he said.

Related stories:

TV: Brokers slam mandatory MFAA membership



  • by ozboy 13/02/2012 10:23:32 AM

    What percentage of members actually filled in the survey? Most people keep quiet as apposed to complaining. Couple this with 51% only being satisfied and I think the MFAA is well down on where it should be

  • by Country Broker 13/02/2012 10:52:52 AM

    I agree with ozboy but I am still one who believes that the MFAA provide value , a prime example is the new securities registers , the MFAa information vis John Denovon has been excellent compared to the information about from some of our lenders.
    I question the cumpulsory membership aspect from the lenders and aggregators.

  • by Paul Gollan 13/02/2012 10:57:08 AM

    With the greatest respect to Steve, whilst my personal view is the MFAA is a wonderful organisation that does great work, if the requirement of compulsory industry membership was removed by all lenders as condition of accreditation large numbers of brokers would exit faster than a colony of ants on a blueberry muffin.