MFAA president: Further cuts "inappropriate"

by 10 Feb 2009

President of the MFAA, James Symond, has warned the banks that any further changes to commissions would be inappropriate and could kill off the industry.

"I think if there was any fundamental change to commission structures it will radically change the mortgage broking proposition, that is...will people be able to survive?...I think the banks also know that," Symond said in an interview with MPA.

To date the MFAA has not spoken out publicly on commission cuts.

Symond, who is also executive director at Aussie, said brokers were worth more than what they are currently being paid.

"I think the value the broker brings to the consumer well exceeds the commission they get paid and to reduce it any further would be very inappropriate."

He said though that he was not hearing any talk of further reductions and that things had settled down since the changes made last year.

However, while brokers will be pleased to hear Symond speaking out, the signs remain ominous.

Since the start of the year, Suncorp has already overhauled its commission model while BankWest has cut commissions and may change them again mid-year.



  • by Broker 10/02/2009 1:58:45 PM

    How nice to see someone from the MFAA actually say something constructive about the issues we face as brokers.... What do the rest of the puppets in there actually do?

  • by Andrew 10/02/2009 2:38:17 PM

    I disagree with the fact that brokers are paid less then they are worth at current. It's a loan application and it's not very hard. For years, brokers were paid sooo much for doing this and when it comes down to crunch time to get their efficiencies up and to do a little more worth, rather than relying on the lender to tell them what to do, they kick up a stink! Work a little harder fellow brokers and you can still make it worth while. I don't agree with future cuts, but wake up and get professional people.

  • by Andrew 11/02/2009 2:29:49 PM

    Pardon me James but I believe the existing cuts were inappropriate. Still, it's nice to see the MFAA has awoken from its dormant slumber - have we got a fee increase coming?