MFAA members to become 'Professional Credit Advisers'

By Larry Schlesinger | 23 Feb 2010

The 12,000 members of the MFAA are set to operate under the new trademarked designation of 'Professional Credit Adviser' following completion of its strategic review.

The new designation is part of the MFAA's focus on the need for brokers to evolve professionally.

It forms part of a member consultation paper "Focus on the Future" released yesterday, outlining the key initiatives for the association in recognition of the "ever changing dynamics of the credit industry".

The MFAA held its first roadshow in Sydney today to explain its new vision with roadshows to be held across the country until the end of March. State councils and National Committees have already discussed the proposal. Once the views of members have also been considered, a final decision will be taken by the MFAA board.

The proposal is built around a new 'MFAA Professional Framework', the association will offer "an education pathway that will provide the building blocks for continuing professional development leading to professional certification of members, maintaining those standards, and requiring all members to obtain a Diploma as the minimum competency standard" and "the Code of Professional Conduct which sets and enforces the professional obligations, practice standards and ethical foundations for members".

MFAA chief executive Phil Naylor said, "The enhancements to the MFAA's Professional Framework will continue to build greater confidence in the advice consumers receive from any one of the 12,000 MFAA Professional Credit Advisers on, what for many is, their largest financial purchase.

"Currently MFAA Professional Credit Advisers have demonstrably higher standards than required by legislation. "Focus on the Future" initiatives are about further raising the bar of professional standards and ensuring it is appropriately recognised and rewarded by politicians, regulators, consumers, lenders and other industry stakeholders."

The final key initiative will be to ensure that consumers - "the ultimate beneficiaries of the enhanced professionalism and standards" - are aware of the benefits of dealing with a MFAA Professional Credit Adviser.

Related stories:

MFAA lays out requirements for 'professional broker' - The MFAA has laid out a proposal for what it deems to be the requirements for a professional broker, to encourage lenders to adopt quality based broker accreditation policies for its members

Back

Latest comments

Start a new discussion

Commented by: Dave at 23 Feb 2010 11:33 AM

Well and good. Do you think at some stage the MFAA could lead by example. Transparency for client has been their catch cry for over 4 years now but it has taken the MFAA over 6 months to add one line to the FBC "Some lenders may require us to submit a certain number of loans to them per month in order to retain our accreditation with them." Six months for this one line to keep all it's members within the law. The MFAA makes it difficult to take them at their word when they say one thing but their actions speak far different words. Need to pick up that ball and run or get out of the way.

Commented by: MichaelM at 23 Feb 2010 01:00 PM
It sounds to me like another money making grab on their part. MFAA accredited Diploma surely means from their own education centre, on top of their increase in fees and lack of support. Desperate measure to rake in all those tens of thousands of brokers who will exit MFAA when licensing comes. Michael MSTActive.com

Commented by: Broker at 23 Feb 2010 05:10 PM
You are spot on Michael , and once that's done, no doubt they will come up with some other add no value whatsoever scheme in order to continue to fleece us. They remind me of the VIC state governemnt, good at collecting revenue , but little else!

Commented by: Broker Watcher at 23 Feb 2010 05:59 PM

When the lenders replace membership of an industry body with must hold an Australian Credit License or be an Authorised Credit Representative, as a condition of holding an accreditation, the 12,000 members figures will shrink dramatically. In fact one would have to question the legality of any lender continuing to demand membership of an industry body in a licensed environment. Elvis has left the building.

Commented by: MichaelM at 23 Feb 2010 06:03 PM

I don’t know if the MFAA realises the complete irony of their proposal and the seemingly blatant attack on the very Mortgage Brokers they are meant to support and represent. So if their 12,500 members at this present time are valued professionals, but do not continue to register themselves with the MFAA come licensing, and then they are suddenly turned into unprofessional renegade cowboy brokers?

Like Broker said, they are like the Vic Government, but at least we can vote out the Vic Government this time round, and vote in the members who actually try to represent the people.

Michael
Mstactive.com

Commented by: Steve reid ( Brisbane ) at 23 Feb 2010 10:28 PM
FBAA brokers Assoc run by brokers for brokers MFAA are gone

Commented by: Broker at 24 Feb 2010 01:17 PM
Yet the reality is that banks are not the slightest bit interested in either the FBAA or the MFAA (when it comes to a fair go for brokers). As brokers we have no voice / muscle whatsoever, so the banks will just continue on their merry way. It's been said 1000 times before, just stear clear of CBA & Westpac now and forever, quite simple really.

Commented by: Solomon at 24 Feb 2010 02:30 PM

The MFAA recently announced a non-quantity based proposal re broker accreditation with lenders, it was big news for the MFAA in its rare and noble cause for its broker members. CBA however in a subsequent press release on the subject swished the MFAA proposal away, like a wave of the hand swishes away a pesty blow-fly. Did the MFAA show some backbone and solidly respond to CBA's rejection of the meritorious MFAA proposal? It appears not as instead we see that the MFAA reduced itself (and all of its broker members) to a 'door-mat' response through the MFAA announcement of the inclusion of a quantity-based disclaimer statement as follows: "Some lenders may require us to submit a certain number of loans to them per month in order to retain our accreditation with them." In failing to continue to address the obvious problems(e.g. the undermining of the whole broker proposition to promote choice and service to consumers) in quantity-based lender accreditation, the MFAA has let down its 1000's of broker members and many more 1000's of Australian consumers.

Commented by: Terry B. at 24 Feb 2010 03:44 PM
Smells like a combined "money-grab" with an attempted justification for their own existance... once Licensing is in place, There simply IS NO NEED FOR THE MFAA once ASIC Are in charge... MFAA - Just give up, roll over & die...

Commented by: BBB- Broker at 24 Feb 2010 04:00 PM

I am one who thinks in the past the MFAA have been too ready to serve the banks,when the majority of the members were brokers.
Let us give the MFAA some room here the actual correspondence that came out yesterday, gave the results of the member surveys from last year and they really showed that the members want the organisation to be broker orentiated, they are moving in that direction right now , with NO direct bank representaion on the national board and so on.
The proposal paper that was put out yesterday also gives some comfort in that there is a clear path to gain recognition for years of experience and acedimic qualifications .This is a positive move .What the MFAA need to do next is start to recognise that the CBA & Westpac are not interested in what the MFAA think or do, so where to from there cancel all sponsorship dollars from lenders who will not support the members of the MFAA , reduce the annual conference to three days and two nights if that is needed , due to lack of sponsorship dollars . when a lender is not willing to support brokers the CANNOT be exhibitors at any MFAA event.
The MFAA should concentrate on supporting and promotion lenders and aggregators, which support the brokers .

Leave your comment

Start a new discussion

Broker news forum is the place for positive industry interaction and welcomes your professional and informed opinion.

You must login with your Broker news username and password to leave a comment. If you are not already a member, sign up now!

Post your comment below or
E-mail the editor with your viewpoint

Post a comment
Broker news welcomes your contribution. Your IP address is recorded in the event of a complaint.

Name *

Comment *

You are about to submit your comment. Is it:

Professional

In your own name or pseudonym, not impersonating someone else

Free from rude language

Free from advertising

If you prefer not to post but are still keen to get your viewpoint across, you can always e-mail the editor.