MFAA boss: we need a bigger voice than just mine

by Julia Corderoy20 Feb 2015
MFAA chief executive, Siobhan Hayden has urged lenders to play a more active role in educating the wider media and consumers about the role and rigour of brokers.

Whilst moderating a panel of lenders at the Australian Mortgage Innovation Summit yesterday, Hayden asked the panel – consisting of Suncorp, Commonwealth Bank, Pepper and Advantedge – what their reaction is when they see anything in the media that misrepresents the broker channel or the performance of the channel.

“I was quite surprised when The Australian published an article about four weeks ago in response to the ASIC investigation into the Mya Financial debacle - $110 million in fraud. After twenty-five years, the senior finance editor seemingly had very little understanding of what brokers do. So outside the broker channel, as lenders and brands in the market, what are you doing to help educate people in the media and people outside our industry in the relation to the rigour around what we do?” 

Steven Degetto, head of intermediaries at Suncorp Bank – which gets 70% of its home loan volume through the broker channel – pointed out that most consumers understand the broker proposition well, commenting that brokers hold just over 50% of the market share.

“So 50% of consumers in Australia can’t be wrong,” Degetto said.

But on educating consumers to the broker proposition, Degetto admitted that the lender “probably [does] take more of a backroom approach to that”.

Hayden, who did meet with the editor at The Australian to clarify his understanding about the broker market, has now urged lenders to play a bigger role in this type of education – more than just discussing prudent lending with regulators.

“If the channel is so big and there is such an appreciation of it in the lending environment, do we have a bigger voice than just mine to identify these challenges?” she asked. 

“…The conversations lenders are having with APRA still don’t seem to resonate to me because what they [journalists] write and how they interpret what we do in our industry doesn’t seem to correlate.”

Last month, the MFAA revealed plans to launch a Facebook marketing campaign aimed at directing consumers to brokers in its commitment to educate consumers and drive them to brokers.
 

COMMENTS

  • by Adrian W 20/02/2015 9:42:22 AM

    Yes Siobhan, you are right. It would be appreciated if a Lender (every now and then) would publically acknowledge the efforts and support of good Mortgage Brokers. Some Brokers give the rest of us a bad name, and unfortunately the media publishes the negative news more than the positive.
    I've got a story where I helped a lovey couple with a handicapped daughter, and every bank in the country said no because their income was low, and the female applicant wasn't able to work as she had to care for their daughter. They're great people and just wanted to buy a home.
    Thankfully, I was able to introduce this deal to the right lender who looked outside the square and got this deal approved.
    These sorts of stories are never published. If they were, the public would see the value in using a Broker and that would increase our market share.

  • by Paul Brown, Nth Adelaide 20/02/2015 9:51:28 AM

    Within the bank there will always be a proprietary vs 3rd party battle due to the hardliners at executive level with either Nil or poor broker experience.
    The 3rd party businesses within each bank are generally treated as the poor cousins due to the higher costs associated with generating their returns.
    I'm not sure that we'll ever see a bank recommending that clients seek the advice of an MFAA credit advisor sadly. Can you imagine a major bank actually admitting that their employee (with probably an average of 5 years banking experience and knowledge of only one bank's products) being less able to assist a client to find the best possible solution?

  • by Old Broker 20/02/2015 9:59:16 AM

    I will never forget the first time I heard in front of me many years ago a CBA presentation from a lovely person who (gratefully) is no longer around informing us brokers that CBA, although did not want to deal with us, were in a tight bind as they "had too". Yes, they now own Aussie Home Loans and if my memory serves me correctly, ran an ad in 1995 of a large person closing an office in the middle of the night... Who would ever have called that one? The Banks will never give brokers a free kick because they don't have to.