Major banks lose influence on MFAA board

By Larry Schlesinger | 30 Nov 2009

The major banks no longer have any direct representation on the MFAA board following last week's AGM

Alison Whittle, director of Tiffen & Co and The Mortgage Detective, has replaced the CBA's Kathy Cummings as NSW/ACT state president, while Adelaide Bank's GM for third party mortgages, Damian Percy, has taken over as chair of the National Lenders Committee, a position previously held by NAB Broker's Matt Lawler.

Westpac and ANZ are not represented on the board.

Stephen Kane, CEO of NAB-owned FAST, has been appointed chair of the national brokers committee and is also the treasurer.

Mortgage Ezy CEO Garry Driscoll was appointed chair of the national mortgage management committee, while Barry Elmslie, from Specialist Mortgage, was named both WA president and vice president of the MFAA.

All the remaining board positions are filled by members that are either brokers or who represent broker groups.

For a full list of the other board members, click here.

Related stories:

MFAA board: Cummings retiring, Lawler stepping down - Kathy Cummings, executive GM for Third Party Banking at the CBA, will not be standing for re-election as NSW/ACT president of the MFAA

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Commented by: Broker at 30 Nov 2009 11:11 AM

Well that is good news,as they should have never been on the board in the first place. I doubt the MFAA will ever be relevant to our industry, other than to extort more $$ out of Brokers. Then again we should expect them to conspire with the majors,and force us to complete unnecessary Diplomas etc, which will add zero knowledge/benefit to professional brokers or our clients, other than to extort more $$ out of us and somehow continue to justify this irrelevant organisation they call the MFAA.

ASIC should now be the only body we pay any attention to.

Commented by: Another broker at 30 Nov 2009 12:05 PM

Well the banks have really left a mess behind in the MFAA and had their way for a long time. We'll see what our new 'dictators' have install for us. Only time will tell if this "Coup-d'etat" is better than the previous. Lets start with the 12 month 100% and 18 mth 50% comm clawbacks, then work on the comms to better levels ? The broker world is watching very carefully, and the future of any such a body may be in question if there is no broker representation. I wonder now that the banks have no representation in the MFAA if they'll strong arm compulsory membership and other 'blank pieces of paper' as requirements for brokering. Only time will tell. Fingers crossed !! I think I just saw a flying pig past the window ?

Commented by: Another broker too at 30 Nov 2009 12:32 PM

Yes good news! I say hopefully ! Lets see what the new regime brings. Lets hope they will strongly represent there members / brokers against the Bank's, as I concur with the "another broker's" comments:
Lets start with the 12 month 100% and 18 mth 50% comm clawbacks? Increased commissions from the lenders as interest rates increase ? or Increase Commissions guarantees based on the lenders failure to meet their service levels? (my way of thinking most lenders would go broke trying to meet this) Lets hope the new regime can bring some benefits back to its members, to add value $$ to their businesses rather than continually demand $$$. If you don't have hope you have nothing !!!

Commented by: Broker at 30 Nov 2009 12:39 PM

Well said , Another Broker. i think I just saw that pig fly past my window too!
Re the clawbacks , there is nothing more frustrtaing than clawbacks, due to no fault of the Broker, I:e property was SOLD, not refinanced for reasons out of our control.

This is no clearer indication of what banks think of our relationship with them and what our time is worth, absolutely ZERO!

After penailsing the client with exit fees
(Didn't Swanny say he was getting on to this?, I won't be holding my breath)
they then think it is fair to also penalise us, so that we get paid ZERO.

Do volume bonuses within the branch newtwork get clawedback, if a loan gets paid out , I highly doubt that.

The double standards are what make me sick, after 8 great years in this industry, I know my long term future is not in this industry, as I can't trust the banks with my long term career prospects and income , and I'm planning accordingly.

Commented by: Do The Rightthing at 30 Nov 2009 01:51 PM

The development of forced minimum loan lodgements by the major banks is an outrageous attack on the broker industry for the following reasons:
- It further greatly undermines the broker industry proposition of providing objective advice to customers;
- It ruins fair competitive practice of the broker industry through forced sales by brokers (an ACCC matter)
- It threatens broker jobs through threatening lender accreditation of brokers
- It is a misuse of power by major industry players(eg CBA and Westpac)to stifle competition (an ACCC matter)and
guarantee/increase particular lender revenues at the expense of competition
- It threatens the whole financial industry(as banks have already done via the GFC) through twisted short-term "$ in your face only" logic that has disasterous longterm consequences for the industry and it customers. The banks need the broker industry to keep them honest in areas of customer service (rememeber the banks' reductions in customer service and branchs in recent times. The broker industry was created as a response to the banks' lousy customer treatment.)

Commented by: Re do the right thing.. at 30 Nov 2009 02:44 PM
You are spot on, it goes to show what the ACCC stands for , nothing in reality. The banks , oil industry , Coles and Woolworths most certainly don't seemed concerned with their rhetoric. In fact the ACCC and MFAA are similar in so many ways, all bark and no bite whatsoever.

Commented by: Dave at 30 Nov 2009 05:46 PM
Let the games begin. Lets see what difference this makes. Please revisit this story in 12 months and see what has changed, it will make an interesting story.

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