The MFAA has blasted APRA's critique of brokers as misguided.
Yesterday, APRA chair Wayne Byres
caused a stir when he claimed at an Australian Business Economists briefing that loans sourced from the third-party channel carry a higher risk than loans from proprietary channels. Now, MFAA chief Siobhan Hayden has challenged Byres to present data supporting this view.
“First, I would call on Mr Byres to share the data that has led to this opinion as we are yet to see any information that supports this view. In fact, I advocate that the broker channel delivers a higher standard of compliance and assessment than the propriety channel, and some major lenders have confirmed my view,” Hayden said. “Secondly, loans are made by lenders based on the information provided by customers either through third party introduction or their own direct source. We believe that because brokers are arguably required to jump through more regulatory hoops, some of APRA’s conclusions may be drawn that may not have any basis in fact.”
Hayden said the MFAA had "moved to connect" with Byres to find out how APRA had come to the conclusion "without any apparent broker industry input or collaboration". She said the MFAA had formally requested consultation with Byres and for a full disclosure of reference documents.
“The MFAA’s research, such as the ‘Observations on the Value of Mortgage Broking’ by Ernst & Young, is the type of real information that brokers need to dispute such comments. Verbal statements are not enough- you need supporting research. By developing this vital information we are in the best position to present our case to APRA,” Hayden