MFAA applauds strict broker discipline

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The MFAA has welcomed ASIC’s banning of another financial executive (Harold Bundy of Ezymanagement) in Sydney last week, along with other industry safeguards, as it symbolises a stronger regulatory regime on the sector.

The banning of the executive, whom the MFAA stresses was not a member of the organisation, reinforces the association’s own moves to tighten the disciplinary controls placed on its members.

In light of an Australian Broker article published yesterday, in which ASIC spokesperson, Daniel Wright, said the organisation is witnessing a ‘continuing’ trend of fraud within the mortgage broking industry, MFAA CEO Phil Naylor says his organisation has expelled 31 members over the last eight years, with the ‘majority’ of those members found by the MFAA’s Disciplinary Tribunal to have engaged in ‘serious misconduct’ through submitting fraudulent loan applications to lenders.


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  • Broker on 12/02/2013 10:02:09 PM

    (In response to David: re high volume broker comments)

    In due course, I will expose the major bank (for their systematic cover-up) and the MFAA (for its farcical shortcomings, whilst allegedly masquerading as the “police” of its own members) because how this dishonest individual has walked away seemingly unscathed (and with a trail book intact) is anybody’s guess, and is a slap in the face to every honest broker in the country.

    Watch this space, and perhaps a few others if I continue to hear nothing about this

  • David on 12/02/2013 12:32:54 PM

    Broker: If you 'KNOW' about such a case, ( the high volume broker) and you are a member of MFAA, my understanding under the Code is that you should report the case to MFAA. Perhaps then something may be done about both the retiree and his/her bank funder.

  • AaronG on 12/02/2013 11:52:53 AM

    These things always seem like such a joke to me and when I read the comments from brokers who like this sort of thing, I'm always amazed when they want further controls. Sure, if someone breaks the existing laws, take measured action, but calling for more just means more useless paperwork.
    What exactly is the problem that exists that we need to pedantically regulate away? I challenge anyone to find a more healthy banking environment in the worldfor the last 6 years. We didn't need ASIC breathing over our shoulders to get there and the Nanny Stateism over which words are used here and there and what exactly constitutes financial, legal or whatever advice is bad enough, but now I hear brokers wanting more of it.
    Wake up! We are mortgage professionals and should be able to discuss nearly every single facet of that with our clients.
    Seriously, what advice is being given that could potentially hurt a client? Whether they should get a loan or not? They called us there to process a loan for them! What product is best for them? They come to us for this advice! Again, I ask, what is the problem we are trying to solve by being pedantic about every single facet of the industry??!!
    What are the incidences of fraud? Naught point zero zero 1 percent of loans form brokers? Current legislation, regulation, and industry practices act like we have some sort of widespread epidemic. What evidence is there of this? None. So we make new criteria to make brokers look bad. OMG! this broker used the word 'best' in something! Well, get him out of the industry and thank God he's gone before he dragged the rest of us down!!! This isn't a great world to live in and I think brokers should consider this before they applaud and ask for more if it from ivory towers.

  • Larz on 12/02/2013 11:41:42 AM

    I would have thought anything that rids our industry of crooks should be supported. Not sure why it is broker bashing to say that brokers who commit fraud should be identified and thrown out of the industry. I dont think anyone really cares if it is AASIC, MFAA, FBAA or someone who does the deed as long as these people are gone!

  • nikosau on 12/02/2013 11:35:35 AM

    Dean P. Its the Job of the MFAA to attack rogue brokers and that is what I as a member expect of them. There are still many cowboys around and I don't want them in my profession and in my professional body as their conduct reflects on the rest of us.
    Its a must if we are to be viewed as true professionals

  • OzBoy on 12/02/2013 11:27:20 AM

    Only the tip of the iceberg. Know intimately 2 cases against brokers, one the broker quit the MFAA before it got anywhere, no advertising from the MFAA about him and I have heard he is now back in business and writing loans. The 2nd is still ongoing complaint lodged in Oct 2012 and MFAA were to get back to complainant by the 4th of Feb...still heard nothing. Both were serious breaches of MFAA's code of conduct. Unless the broker admits to it there really is nothing the MFAA will do to enforce it's Code of Conduct and that is just the way it is, but then to have Mr Naylor now come out with the above is disappointing and not a great way to lead.

  • Andrew on 12/02/2013 11:19:35 AM

    Training is totally inadequate and is sales focused. There needs to be training in case law concerning fraudulent behaviour by brokers and legal responsibility . Brokers are still giving tax advise insurance advise and financial planning advise without realising the consequences of their actions. The diploma itself is a joke as it does nothing to train brokers in their legal and ethical responsibilities at depth. Much of the training places the broker as the clients centre of the universe within his referral network as such attempts to move the client away form his or her accountant, solicitor, financial planner etc whom the client could have relationships with for many years and the broker could have just met the client. So rather than working with the clients trusted professionals with whom the broker has an arms length relationship and provide a quality service he or she tries to pull the client within his or her referral partners network which may not be an arms length relationship and to the interest of the broker and at times do their best to keep the client away from traditional advisor as the broker sees them as a threat.
    I see mortgage broking as a profession with a limited future as other highly qualified professions with client bases can easily take it on as an add on to their business eg accountants, financial planners
    So its either shape up, up skill and behave or loose your livelihood. The only exception is the larger Broking firms.
    As for the ASIC they do mean business and rightly so and you haven't seen nothing yet

  • Terry on 12/02/2013 11:04:21 AM

    Let the broker bashing begin. Seriously, lets compare these figures to other parts of the industry such as bank lenders and see who are really the dodgy operators. The bank will keep these figures well hiden I'm sure. Truth be known the incidence within the banks is probably considerably higher in the number of incidence. These figures should be lodged with the MFAA and recorded to provide transparency in the industry and a true measure of the incidence of fraud within the industry. We would see a lot less broker bashing I'm sure, or is it like some sort of sports drug epidemic where everyone knows it's happening but doesnt want to upset the white elephant in the room.

  • Broker on 12/02/2013 10:59:24 AM

    I also know of a high volume MFAA member that was umm "advised to retire" by a bank(and did) about 6-8 months ago....yet I have not a squeak from MFAA or ASIC to date re this case....why???????

    Time they both got to work!!

  • Broker on 12/02/2013 10:55:59 AM

    31 out of what 13000 MFAA members ( now approx 9000?)

    Well done MFAA for stating the bleeding obvious....

  • DeanP on 12/02/2013 10:34:50 AM

    Here we go again. So typical of the MFAA attacking brokers whilst all this time saying nothing about lenders.

  • Wishful Thinking on 12/02/2013 8:42:48 AM

    Expelled 31 members over the last 8 years for serious misconduct. How out of touch the MFAA are. This is one years work where I am employed.

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