A trainer has claimed brokers need to better educate themselves if they are to be taken seriously by their referral partners.
The MFAA has faced backlash over its requirement that brokers complete their Diploma, but AAMC general manager Jeff Mazzini has told Australian Broker that brokers will have to increase their educational standards if they are to build referral partnerships.
"I always say to brokers, 'Who are your referral partners? Do you deal with real estate agents, with accountants or with financial planners? What's their minimum level of education that they have to have to be qualified in their industry?' It's a Diploma. How come a broker can walk in with a Cert IV and say they want their business?" he said.
Mazzini claimed that many accountants, financial planners and real estate agents do not take mortgage brokers seriously due to a lack of industry-wide education, and said many are reticent to refer clients to brokers.
"I go to PD days and meetings with them, and they all tell me the same thing: They will not get involved with brokers because of their skill level and education level," he said.
While many brokers have railed against the industry's increasing educational imposts, Mazzini claimed the standards would ultimately benefit brokers' bottom lines.
"The whole thing they're forgetting is that upskilling and education will actually help them earn more income. People have got the opportunity to gain a minimum of 10% more than a person who's not educated," he said.
However, Mazzini said brokers were not alone in fighting against higher educational standards. He claimed this mindset was common across Australia.
"The problem with most industries across Australia is a lot of people have to be forced into study because they don't want to do it," Mazzini said.
Not there yet: Broking will become 'bona fide' career
'We won't forget Diploma deadline', MFAA warns
Complete Diploma to avoid 'dumb' questions