“Not everyone is built to be a broker”: MFAA

by Miklos Bolza05 Sep 2017
The significant proportion of new brokers who are failing to reach success in the industry is troubling, says the Mortgage and Finance Association of Australia (MFAA).

Speaking on an industry roundtable hosted by Alphabroker Mentoring on 18 August, MFAA head of marketing, communications and sponsorship Stephen Hale said that the number of brokers coming into the industry from outside of banking and finance was on the increase.

“What disturbs us as an association is that the industry average of success for new to industry brokers is only 50%,” he said.

“At the MFAA, our success rate is higher at 72% because we do invest heavily and recommend support in mentoring as well as workshops for anyone who is new-to-industry and that has been very successful for us.

“Unfortunately, not everybody is built to be a broker, so that is a challenge for us.”

While the industry was attracting 500 to 600 new members every six months, Hale said that this would plateau over the coming five years.

“Industry data is indicating that whilst broker numbers are growing at a healthy pace in terms of numbers, the market is not growing with them in terms of the dollars available for brokers to access. That tends, economically, to suggest that some people are going to get out of the market.”

The industry would see a transitional trend of more people leaving the industry due to unwanted changes in processes or technology, he said, with these individuals being replaced by new-to-industry brokers.

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  • by Head Carrot 5/09/2017 8:41:44 AM

    Entry Level. Here's a suggestion, improve the entry level so that your average Jo Blow who is say a Plumber than decides on becoming a Broker without any experience. It is the hardest it has ever been in Finance, let's not be naive to this, so how can a "rookie" expect to survive without the minimum slill-set and experience.

  • by Brado 5/09/2017 9:34:49 AM

    what do they determine as success by the way? from what I see, a vast majority of new brokers out there do not understand simple lending practice, lending policy, how to get a loan approved and why it would or would not get approved, how to find issues and then a suitable lender, or work with the client to get them into a position to be ready... I think that becoming a mortgage broker needs to be harder. the Cert IV and Diploma shouldn't be a 2 week online course, at least 6 months should be spent training. I don't think that it is good for the industry as a whole, when anyone can just do an online course and join up, then start spruiking they are a mortgage broker start lodging loans. as a whole, that kind of thing will damage our industries reputation with the public.

  • by newbie 5/09/2017 12:10:29 PM

    Maybe its because the old school brokers running the mentoring have no idea how to attract clients in these times. Times have changed and the way they did it doesn't work any more. The advice I got from my mentor was friends and family (they don't want us knowing their business and they know we are new), find a real estate agent and find an accountant (they have in house or established relationships with experienced brokers). Any other ideas I asked......Ummm not really, maybe you should try and get a job with an established firm. But they want experienced super stars. Hmmmm, oh well good luck, keep at it, see you next month. The mentoring was farcical and degenerated into a bunch of newbies asking each other how do you get your leads?