MFAA ensuring 'survival of the fittest'

by Mackenzie McCarty19 Apr 2012

MFAA CEO Phil Naylor has claimed the association's member numbers have stablised, and that it is now focused on helping new entrants to remain in the industry.

Following a rapid drop-off from 13,800 before the global financial crisis and the subsequent introduction of new compliance obligations under NCCP, Naylor said membership numbers had remained close to 11,200 for the last 6 months.

He said this indicated that those brokers who still remained in the profession were more permanant players who are able to maintain viable operations.

However, the MFAA has been concerned about an extremely harsh 65% drop-out rate of new entrants to the mortgage broking industry over the past 5 years.

Naylor said the near one-in-three surival rate had led the MFAA board to discuss its approach to the question of whether this was 'nature' at work - where only the 'strong survive' - or if it could do more to support these entrants.

"We had encouraged these new brokers to enter the industry, but we also felt we had the responsibility to help them survive," he said.

Naylor said the MFAA was aiming to give new players the 'best chance possible' from now on, via training and education intitiatives. He noted the body's Certified Mentor program, which has accredited over 30 mentors across Australia.


  • by ozboy 19/04/2012 10:46:00 AM

    Yes a mentor and erroneous education requirements which will require new entrants to spend more money will help!! Mr Naylor on our planet...Earth..we require real solutions not further hype. Let's see the numbers after July 1.

  • by Damien 19/04/2012 4:02:56 PM

    It won't be 11,200 for much longer!!

  • by Julia Swanee 19/04/2012 5:01:29 PM

    Some reasons: buyer beware changed to broker beware via Government's NCCP, higher risks of clawback via Government's removal of exit fees, broking firms promising brokers much & then not delivering, banks reducing commissions yet broker litigation/clawback risks have increased along with increases in NCCP redtape+admin paperwork.