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MFAA Prosper : Mortgage and Finance Brief 09
The MFAA has received complaints about trail books being offered for sale by some entities with a poor history of ethical dealing. Most operators are, of course, principled and fair in the business they undertake. However, the MFAA has been informed by a number of complainants that one operator, who appears to operate out of Victoria and who generally approaches by email, will not make any data available until an offer is made for the book and a substantial deposit paid prior to due diligence being allowed to be undertaken by the purchaser. The likely outcome of the offer being withdrawn is suggested to be a loss of the deposit. Some members have complained of a substantial loss when no book details eventuated (other than an indicative sample) after a significant deposit payment. We've even had complainants state that the operator in question denies that it is the operator about whom the MFAA has issued its warnings. The MFAA recommends that members should: 1 effect some due diligence on the book seller or seller's agent prior to entering into negotiations, and 2 consent to only sign a confidentiality agreement with the vendor about the data in a book prior to their due diligence on the quality of the book and CRM files before an offer of its value to the purchaser can be assessed. The potential purchaser should be able to provide a deposit (if required), which should be specified as fully refundable in the agreement with the seller, with the exception of a reasonable administration fee agreed beforehand, if the data in the book is unsatisfactory or does not meet the buyer's expectations. The MFAA strongly recommends that if you are purchasing a trail book, you use of the services of a legal professional. Warning: Trail book purchases Members are advised to take great care if they are considering the purchase of a trail book. Words Calvert J. Duffy, Executive Director -- Gover nance & Compliance, MFAA Whether you're charging a fee for service or not; whatever your position on the ban on exit fees; one thing's for sure: having a clearly-defined service proposition is more valuable than ever before. During an engaging MFAA lunch debate recently, brokers heard key industry people discuss the pros and cons of fee for service. Despite no conclusion being reached -- and in truth no definitive conclusion is likely for some time -- the point was raised: what are brokers telling customers and potential customers that they can offer them? A mortgage? You can get one direct from a bank. Having a really clear, defined service proposition, which illustrates the benefits of using a broker, not just in the short term, but in the longer term too, is vital. Not only will it get you more new business, but it will also establish reasons and validations in customers' minds why they should use you in preference to dealing direct with a lender, and why they may be expected to pay for the service you offer. In this issue of the magazine, we've spoken to six different sectors, each with their own take on the exit fee ban. It's certainly a hot topic, and the differing opinions make for fascinating reading. We've also spoken with a top business coach, who's given us a 10-point plan to help every business succeed. Of course, this month sees the MFAA National Convention take place, and it should be firmly in your diary if you're serious about succeeding throughout the next 12 months. The Convention seminar line-up offers a great mix of informative, inspirational and entertaining speakers, while the ExpoMart will provide a good opportunity to meet up with lenders, service providers and your peers. I'll be there for the three days, so please come and say hello. Martin Wanless, Editor Defining your proposition 10 | Mortgage & Finance brief Editor's letter MFAA Compliance Tip
Mortgage and Finance Brief 08
Mortgage and Finance Brief 10