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MFAA boots 1,100 brokers

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Australian Broker | 25 Mar 2013, 09:00 AM Agree 0
The MFAA has just announced the termination of 1,100 broker memberships
  • Jane Slack-Smith | 25 Mar 2013, 10:00 AM Agree 0
    Even if there is 'only' 12% who are exiting MFAA or even the profession I find it surprising. Here I am trying to buy mortgage broking books from brokers (FAST, Choice and PLAN) and there seem to be none available. What do you think if you were choose no longer to write loans - would you sell your trail book to make a return on your years of investment or let it slowly erode without the ability in responding to your clients requests for assistance if they need it?
  • John Robbo | 25 Mar 2013, 10:12 AM Agree 0
    Yet they don't demand the same requirements by bank staff who effectively do the same job - only with less products. Never been with MFAA & never will. They have NEVER represented brokers & they never will.
  • Wayne | 25 Mar 2013, 10:21 AM Agree 0
    Smoke and mirrors. Everyone has to have a diploma by June's end anyway. 3 months earlier is just spin.
  • Brett | 25 Mar 2013, 10:24 AM Agree 0
    Hmmm......maybe they won't come returning to MFAA but instead join another membership say with the FBAA who don't have the same rigorous education requirements but is still professional in representing the interests of its members.
  • overtheborderbroker | 25 Mar 2013, 10:25 AM Agree 0
    I guess they'll all go and join FBAA seeing one major aggregator seems now happy with FBAA despite for years threatening to expel any broker who was not an MFAA member.
  • Wayne | 25 Mar 2013, 10:31 AM Agree 0
    What is the going rate on trail books - 2-3 times trail. Allowing your book to slowly erode, Jane, and to refer all your clients to a reputable broker to look after their future needs, may in fact give a better return on your years of investemnt.
  • Vishal | 25 Mar 2013, 10:36 AM Agree 0
    MFAA is a self appointed industry body which collects money from its members to justify its existence and come up with newer standards that only add to their bottom line. I strongly recommend all brokers to consider quitting such organizations and put pressure on banks to not insist on such associations as ASIC LICENCE is more than enough to qualify as an educated broker.
  • Rastafarian | 25 Mar 2013, 10:52 AM Agree 0
    I know quite a few Brokers who have left the industry due to a number of things, including their franchise going into administration and lack of support and the educators not willing to honour the deal with the franchisor which brokers paid for, and now aren't getting the course direct to them. to be honest the diploma course was a rip off, there was nothing new there it was what most brokers were doing anyway. It does not surprise me that so many have not completed the qualification,
  • David | 25 Mar 2013, 11:13 AM Agree 0
    That's a big hit to membership revenue - around $450k/annum by my calculations. I take it that my next renewal will be higher to cover their lost revenue.
  • CHERYL LOBO | 25 Mar 2013, 11:17 AM Agree 0
    Hi Jane,
    Try offering 3 Times the Trail Income.
    Then see the response?

    Its all about an Economic Price.

    I think the other 1100 Brokers have moved to FBAA.

  • Dean-Perth | 25 Mar 2013, 11:45 AM Agree 0
    Why is it the MFAA are always arrogantly attacking us brokers and let turn a blind eye to lender practices. The MFAA acts as the lenders police force on brokers. Go FBAA !!
  • Thinking Smart | 25 Mar 2013, 01:16 PM Agree 0
    Wayne, no everyone dosnt have to have a diploma by Junes end. The ASIC legislative requirement is a minimum standard of a certificate 4 in financial services. This is on ASIC's website, it has not changed of late and there is no discussion that it is going to change in the immediate future. To the comments of not needing an association the FBAA seems to be doing more to support, educate and encourage their brokers, it is no wonder so many have jumped ship and it is a pity that more dont! ASIC set the standard of a certificate 4 (well this is at present) there is nothing to say in the future this wont change, the FBAA minimum standard is Certificate 4 in line with the real policeman (ASIC). They are still encouraging brokers to do the Diploma to advance their skills but are not "enforcing" something that these days has little value, especially when it can be done in 3 days!! The diploma has been made a joke in sorts. It would take 12 months at uni so why as an industry are we different when it comes to educational standards!!
    Im glad that more aggregators are waking up to the FBAA being there and seeing the value, support and training they give to their brokers.
  • Larz | 25 Mar 2013, 03:29 PM Agree 0
    I think it is great that brokers have a clear choice of industry organisation they wish to join. Sure FBAA will get a flood on new members and boast about how well they are doing. MFAA decided to set a certain standard and the FBAA a lower one. Brokers can make their own choice as I am sure there is enough room for both organisations. The main thing is that as brokers both organisations are doing their best to protect and support our interests in terms of legislation, training and advocacy. Time will tell.
  • Davidd | 25 Mar 2013, 04:30 PM Agree 0
    What a waste of time & money.
    Why doesn't all the originators just use FBAA
    I wonder who's salaries are decreased in MFAA to adjust for the cuts to income Rev, mmmm oh that won't happen , as they will increase fees to adjust! As I said what a waste of time & soon to be less of it (our money).
  • Jane Slack-Smith | 25 Mar 2013, 06:20 PM Agree 0
    Thanks Cheryl, I realise that many still think their books are worth x3 (which I would be happy to pay if it was worth it) but with all aggregators and book sellers buying below x2, since the waiving of exit fees and the reduction of commissions in recent years the values have decreased, which although disappointing as business owner is reality.

    As Wayne suggested maybe the opportunity is to be the broker those exiting the industry refer to, I am keen to pursue the opportunity as well.

    The washup is in a few years 50% of all loans will be written by brokers in Australia, we should not be forced to be with one industry 'representative' body over another but we should be professional. Maybe the Diploma is a step in achieving this professionalism but the proof is in the pudding and it comes downtown the customer experience not the piece of paper you may or not have.
  • SIDBROKER | 25 Mar 2013, 10:28 PM Agree 0
    To Jane Slack-Smith. The only person who benefits from selling their trail book is the person buying and wanting it at a fraction of its real value. That is why there are none available.
  • Broker | 26 Mar 2013, 04:07 AM Agree 0
    I "booted" myself all the way to the FBAA 3 years ago ( the much lesser evil of the two) , as I was tired of having my intelligence insulted..

    The MFAA knows that 95% plus of our clients have NEVER HEARD of the MFAA ever , reason being is because they spend the majority of members fees received justifying their own irrelevant existence, yet the spin continues.

    MFAA , what have you done for your members lately ( or ever for that matter), that has actually helped your members grow their business in financial terms?....nothing other than sit back and watch the dictators, dictate terms and you just play policeman

    And you wonder why your members are disappointed with your organisations achievements.

  • Jane Slack-Smith | 26 Mar 2013, 11:01 AM Agree 0
    Thanks SIDBROKER good point if you only look at it as a broker but I believe that we need to look at the others who benefit - that is all the clients on the trail book who are not being serviced properly. After all isn't that what trail income payment is being paid to the broker to do?
  • Question | 26 Mar 2013, 01:36 PM Agree 0
    Does anyone know if the president of the MFAA got his diploma? Then again has he ever been a broker or worked in finance??
  • PeterT | 26 Mar 2013, 04:16 PM Agree 0
    Now we are under ASIC why do we need an association to be affiliated with?
  • Positive Broker | 26 Mar 2013, 07:30 PM Agree 0
    Get over it people. I dont see a problem with higher education standards. Sure the diploma was a bit light on, but if we want to be seen as true professionals like accountants and financial planners then we must maintain the highest educational standards. Complaining about it only suggests we are looking for short cuts.
  • Trevor Osborne | 27 Mar 2013, 04:36 PM Agree 0
    The MFAA are advising members that their memberships are "hereby ceased" but are not refunding on a pro-rata basis the annual membership fee already paid by the member. They truely are an arrogant bunch. Diploma is not required by ASIC or the Lenders or the clients, the vast majortiy who have never heard of the MFAA - its just an ego trip on the part of the MFAA. FBAA here I come!!
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