by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
Email this page to a friend
Search this issue
Index - jump to page or section
Archive - view past issues
MFAA Prosper : Mortgage and Finance Brief 05
Pass it on The latest requirements for referrers under the NCCP Act kicked in on 1 October. Are you up to date with what you need to do? Helpful resources Referrer Agreement letter Located on the MFAA website: www.mfaa.com.au in the 'Member Centre' located under 'Legal & Compliance Resources'. Webinar Also in the 'Member Centre', under 'Webcasts', you can watch a webinar of a recent MFAA seminar on the referrer requirements. Vicki Grey, Partner, Gadens Lawyers, discusses the requirements and answers questions from the audience. As the above are member-only benefits, you will need your username and password. Compliance experts If you have any further questions, MFAA members can contact Peter Kennedy or Calvert Duffy on (02) 8905 1300. How often do you receive refer rals from your local network, such as real estate agents and accountants? While it's a great way of sourcing new business, new consumer credit requirements have imposed tougher r ules on referrals to protect consumers from getting into debt that they didn't want or that wasn't appropriate for them. Who is captured under the new regulations? Your regular referrers -- real estate agents, accountants and other business contacts -- are all captu red by the new laws. Essentially this is anyone who provides you with refer rals in the cou rse of their business. The implication is that consumers expect that these business contacts will have some kind of expertise in suggesting that they contact you as a mortgage broker. Friends, family and past clients who make referrals, for example at a backyard barbecue on a weekend, can still do so without any extra regulatory requirements. What do referrers need to do? Your refer rers need to comply with the strict r ules. These include: • obtaining the consumer's consent to pass on their name, contact details and a short description of the purpose for which they may want a loan • passing on these details within five business days • disclosing any commissions the refer rer receives • not charging the consu mer a referral fee • not providing advice about any particular product (such as a specific home loan offered by a specific lender). What do you need to do? Are your refer rers aware that they need to do all of the above? There's a good chance that they might not know all the obligations they need to comply with. It's your responsibility to ensure that they have been informed. MFAA has made this simple by providing a one-page referrer agreement that you can print out on your ow n letterhead and hand to your refer rers. They don't need to sign it or return it. They will be deemed to have agreed to the terms if they refer potential borrowers to you after receiving the docu ment. If you discover later that they are not complying, you will need to make a decision on whether you can ensure that they understand the requirements and are willing to comply, or whether you will have to request that they no longer make “ For both consumers and industry, the new legislation is a great opportunity to raise the standard professionally when it comes to referrals. It also helps protect consumers and gives more emphasis to responsible lending. ” Paula Hardin, Loan Market Mortgage Broker, Annandale 18 | Mortgage & Finance brief News
Mortgage and Finance Brief 06