TV: MFAA must stand on 'own two feet'

by Ben Abbott06 Feb 2012

Leading brokers have called on the MFAA to provide members with more value for their fees, and have argued that arrangements making membership mandatory should be abolished.

In an exclusive Australian BrokerNews TV report, leading brokers James Green from Oxygen Home Loans, Ian Jordan from The Selector Group and Raymond Xue of ACA Mortgage Solution agree third line forcing notifications under review by the ACCC should be scrapped to allow free choice.

They argue the MFAA must be subject to competitive pressures to ensure value for broker members.

"They shouldn’t be able to be passive and have that membership base being compulsory because it stops them from being innovative and market leading," Green told Australian Broker.

Jordan agreed that membership of the MFAA should be a voluntary commitment.

"The MFAA I think is a good organisation and people should be paying to belong to it, however I also feel that the MFAA needs to stand on its own two feet," he said.

Brokers went on to question the value they were gaining out of MFAA membership fees.

"I really truly believe that brokers feel there is not the value there to be a member and so they are being forced to be a member by the MFAA," Green said.

"I think ultimately, the MFAA has to add value to those smaller players, to make them want to be a part of that association, and make feel that they represent their interests in the best possible way."

Jordan said most brokers would question whether the MFAA represents brokers, or the banks.

"I think the biggest concern for brokers is that they don’t get fair value for their membership fees for MFAA," he said.

To view the full video report, visit our Australian BrokerNews TV homepage.


  • by Polly 6/02/2012 10:59:07 AM

    I note that lawyer is free to join membership of the Law Society. If this is the case, there is really no need to make MFAA membership a compulsory requirement for broker. I can not see why the broker need to follow two standards, one set by ASIC and one set by MFAA. I think ASIC should only be one who can set the standard, not anyone else. This is to avoid confusion and double standards.