Home' MFAA Prosper : Mortgage and Finance Brief 19 Contents Mortgage & Finance brief 11
On 25 November, News Limited outlets
published misleading allegations asserting that
"brokers are failing to adequately disclose the
com missions they receive from lenders when
they sign up borrowers for a loan".
Universally slammed by trade media
platforms and the wider industry, the
MFAA was quick to issue a press release.
It has also published a 900-word rebuttal of the
article in the Sunday Telegraph (NSW/AC T)
which also ran in the Sunday Telegraph (Qld
edition), the Sunday Mail (SA), the Sunday
Times (WA) and online at www.news.com.au
MFAA CEO, Phil Naylor, said the assertions
that mortgage brokers did not act in the best
interests of borrowers are without foundation.
"It is law that all commissions are disclosed
fully in loan documents for borrowers, including
upfront, trail and volume commissions," he
said. "The industry has been closely involved in
the Federal Government's creation of rules to
protect borrowers, who find mortgage brokers
a very valuable resource in making what is the
largest investment of their lives."
Naylor added that more than 41% of home
loans in Australia are written by brokers, the
vast majority of whom are MFAA members,
ensuring the highest professional standards.
While the article claimed that brokers aren't
transparent, Naylor said the opposite is true.
"Transparency is a key aspect of how
mortgage brokers operate and it is unfair to
assert that brokers are not providing unbiased
and comprehensive infor mation as it is
published in the loan documents borrowers
review and sign," he said.
"Our 11,000 members are completely upfront
that they are paid by commission on the loans
they provide, with strict government and
industry rules in place to ensure they comply."
The most important point, according to
Naylor, is the negative implications for brokers.
"It is unfair to smear an entire industry,
especially without asking for the MFAA's
response in the article being published, with
assertions that are misleading and do not reflect
how mortgage brokers operate," he said.
update for MFAA
The MFAA has released
a compliance update
covering a number of
aspects of members'
NCCP Act obligations.
These include revised
guidance on conflict
of interest, variable
rate offers, non-PAYG
lending and small 'r'
representatives. Go to
the Member Centre for
more information at
In response to the
widespread and continual
use of Facebook, Twitter
and the plethora of
marketing platforms by
members, the MFAA
has launched a social
The policy covers direct
or indirect comments by
members, who it says
should "act professionally,
honestly, respect privacy,
display restraint and
uphold the reputation and
integrity of the mortgage
and finance industry".
MFAA CEO Phil Naylor
said that the new policy fits
well with members' existing
obligations under the
MFAA's Constitution and
Code of Practice.
"While social media is a
very powerful selling and
communication tool, the
MFAA is keen to protect
and warn our members
that use of this media
leaves a permanent
record that can damage
our members and
the industry," Naylor
The MFAA developed the
social media policy over
several months with the
input of Gadens Lawyers,
and can be found at
Fallout from News
MFAA Pathways' focus on productivity
The MFAA's newest
Pathways eLearning course
features Tony Wilson from
TeamCorp who has created a
program with a strong focus
on productivity. Wilson
has a passion for human
performance and has worked
with the likes of Macquarie
Bank, Deloitte and Challenger
Financial Ser vices.
Wilson says the program
is about how people perform
at their best every day.
"We have moments during the
week where we are absolutely
on song and 'firing', and we
have a lot of moments where
we procrastinate and aren't
effective at all," he says.
"This program is all about
how we get into a productive
zone where we perform at our
best and stay there for longer."
The course focuses on
three areas; work, home
and relationships, and the
zone of self which Wilson
says is personal, physical and
"This theme is constant
throughout the entire program,
and people can elect to focus
on any of the three areas or
work towards a balance of all
three," Wilson says. "It gives
people back more time, energy
More infor mation, and a list
of additional courses, is available
via the MFAA Member Centre
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