MFAA finds double the 'rotten apple' brokers

by Mackenzie McCarty20 Jun 2012

Eight brokers were expelled by the MFAA in the 2011/2012 financial year, a number double that of the previous financial year, according to the association.

The MFAA said the record number of expelled members were found by the MFAA's Disciplinary Tribunal to have engaged in 'serious misconduct' by submitting fraudulent loan applications to lenders.

The majority of the expulsions covered loan applications where income and savings data of the applicant was dishonestly reported, according to the MFAA.

“The increased expulsions demonstrate the MFAA’s determination to ensure the highest professional standards, as well as a strict and independent disciplinary procedure and very high education standards," MFAA CEO Phil Naylor said in a statement announcing the figures.

Naylor said that such disciplinary action will ensure greater market share for mortgage brokers.

“We expect that the mortgage broker share of the market will expand further this year and the MFAA will continue to be vigilant in weeding out the very few rotten apples in the industry," he said.

Naylor emphasised the small number of expulsions compared to a membership of 11,200.

“Mortgage brokers are now a vital channel for home loans, providing greater customer choice and competition in the market, with a 42 per cent share of the mortgage market," he said.

"On this basis, we need to enforce strict rules on our members to ensure they deliver the best possible service and customer protection."