One in five mortgage brokers are writing “very low” volume, according to a recent report released by the Mortgage and Finance Association of Australia’s (MFAA).
In February, the MFAA released its Industry Intelligence Service (IIS) report. The report is based on data from over 95% of the industry with the cooperation of 16 leading aggregators and broker businesses. It follows on from the quarterly broker market share report and, according to the association, is an industry-first for broker benchmarking.
Siobhan Hayden, the chief executive of the MFAA has just wrapped up a series of national events to discuss the report’s findings with brokers. Speaking to Australian Broker
, Hayden said she was surprised to find that one in five brokers are writing a “very low” volume of loans.
“The MFAA is very excited to deliver broker benchmarking insights with the delivery of the IIS Report and it has provided invaluable insights into the broker industry,” she said.
“A key finding that surprised me was that ‘20% of surveyed brokers wrote less than $1m during the six months up to September 2015’. This represents a trend of $2m annually which is very low volume for 20% of the broker market.”
She said the MFAA is “interested to learn more” about this performance.
According to Hayden, the report has been well-received by brokers and will be used to guide discussions with industry regulators and media.
“The IIS Report is a great addition to the current data the MFAA is delivering on the broker industry (Ernst & Young, May 2015; Deloitte, June 2016) and provides valuable insights which the MFAA can reference and use in discussions with industry regulators, media as well as broader stakeholder engagement,” Hayden told Australian Broker