Don't skip the broker, says MFAA

by Caroline Dann26 Jul 2012

The MFAA has responded to controversy surrounding survey results, defending brokers and their importance in the market.

Loan Market's survey of brokers found the majority dealt with consumers who would 'prefer to deal directly with banks', or believed their services came at a cost.
It sparked furious debate in the industry, with many concerned over how misconceptions could ultimately damage broker business.
MFAA's CEO Phil Naylor has responded by focusing on the strength of a broker to negotiate a better deal from lenders.
“Mortgage brokers are now viewed as a trusted source of advice and borrowers should use them to secure a better home loan deal than negotiating from a position of weakness directly with a lender”.
Naylor told Australian Broker Online the MFAA would do all it could to build consumer knowledge of brokers, however there was no immediate overnight fix.
He cited increased advertising campaigns in social media and consumer press, as well as brokers promoting their MFAA membership to consumers as a sign of pedigree, as key to increasing awareness.
"There is no silver bullet and consumer recognition will not come overnight – however over time we believe [the above] measures together will gradually enhance the recognition of MFAA Approved Brokers just as other professions (for example the CPA) have gradually achieved over many years," he said.
Related news:

Controversial research sparks fee-for-service debate

‘Skip the broker altogether’ say consumers



  • by Moonae 26/07/2012 10:03:53 AM

    When Christopher Zinn can get vast traction with media for his own benefit for that matter selling the concept that debt is just a commodity to be negotiated on price I would have thought an industry body selling a very strong and powerful message could at least have a media presence to sell the message. Get off the sidelines MFAA and spend our money on some better media planning. MFAA has a long way to go and a facebook campaign and a bit of fluffy marketing and stickers isn't going to get us where we need to be.

  • by Tom 26/07/2012 10:05:42 AM

    I don't know of one broker that promotes MFAA to their clients. Mr Naylor please do not spread your propaganda as I find this statement not only offensive but insulting to my intelligence.

  • by MMS from Perth 26/07/2012 10:08:26 AM

    Dealing with a broker is a distinct client advantage. Its not always about fees/charges/rates often its knowing where to go to get the deal approved.MFAA could aide the broker cause by giving dozens of real life examples of when going direct yielded a declinal vs. using a market knowledgable broker yielded an approval.