Higher broker education unnecessary: MKM

by Mackenzie McCarty23 Apr 2012

Mortgage brokers do not require higher education, according MKM Capital's Michael Watson.

Following MFAA calls to eventually implement a higher education requirement for the mortgage industry, Watson said that current levels of education are more than adequate.

"It’s my view that a higher education requirement is unnecessary in mortgage broking," he told Australian Broker.

"Until recently we have enjoyed years of boom times in broking and lending. This has been followed by tighter regulatory controls courtesy of the NCCP and tighter funding parameters.

"This has been sufficient to discipline the industry. Market forces will ensure that only those brokers with honesty, integrity and knowledge succeed."

Watson said that education for the sake of education is not desirable; instead, he said it is in place to ensure that brokers can impart knowledge responsibly and accurately to consumers.

Watson has also warned that unless a course is hard to attain, it won't gain credibility.

"My view may be different if I had confidence in the learning outcomes on offer. I have only had first-hand experience at Cert IV level. However, I have to ask what they are actually teaching at Cert IV level? What is being transferred in the transaction - knowledge, or simply fees?

"Let me ask the question a different way: Will those who learnt anything completing their Cert IV please stand up?" he said.

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  • by Country Broker 23/04/2012 10:29:31 AM

    Thses comments are absolutley on the mark , tghe national board of the MFAA NEED TO take the comments on board. If the MFAA do notthink 3 diplomas is enough , I will gladly look at the MFAA !!!!

  • by Michael Maher - Fair Go Finance 23/04/2012 12:38:25 PM

    Wise words Michael,

    The focus on education has gone totally overboard. This has been very distracting for industry participants and mainly driven by the MFAA, a major bank and a mortgage aggregator. Neither of which should be leading the way or be involved in regulation at any level.

    I strongly believe in a combination of both theory and practice. The regulatory environment ensures a certain education level has been achieved. The necessary experience and business processes must be in place in order to obtain a licence or be appointed as a representative.

    Holding an Australian Credit Licence (as a credit provider or credit assistance provider) ensures that the lender/broker has satisfied the requirements to operate within the segment. The ongoing compliance regime ensures brokers are always improving them selves and their business practices. Brokers invest heavily in themselves and their business and the benefits are felt by the consumers that use their services.

    We need an environment led by the MFAA that promotes the industry to flourish as well as encourage the introduction of new blood. It is well known that there is already plenty of 'experience' in the industry, we now need to leverage this. This will not be achieved by promoting greater education standards on those that have worked so hard to give consumers a FAIR GO.

  • by Terry 23/04/2012 12:46:36 PM

    Couldn't agree more with Michael Watson,I have my diploma to write a mortgage and having to have the diploma to enable me to write a home loan is way over the top. let me put it in perspective. I currently hold a Diploma in Financial Planning and am currenly doing the Advanced Diploma. I am also studying Property Law and Macquarie University. These 2 areas of expertise do require a high level of education without a doubt due the the nature of the advice being given, but to place writing a home loan on the level as the other qualifications is a big stretch. Im not saying that mortgage broking isn't a profession in its own right, I'm just saying its not necessary for the scope of advice being provided. In most cases it should only require a one interview appointment which isn't the case due to the overwhelming paperwork required with legislation in its current form. at the end of the day we determine the afordablity and the loan product that will meet the clients needs and objectives, write the loan and lodge the deal to the appropriate lender. thats is simple.