Home' MFAA Prosper : Mortgage and Finance Brief 19 Contents 12 Mortgage & Finance brief
The MFAA was delighted to be a finalist in
the recent Australian Institute of Training
and Development (AITD) National Training
The MFAA's strategic alliance with Simply
Mentoring and Alphabroker to create a best
practice mentoring solution, the Certified
MentorTM program and Train-The-Mentor
program, was recognised as a finalist in the Best
Implementation of a Blended Learning Solution.
The AITD's awards acknowledge and
celebrate achievement and best practice in the
training and development industry.
The MFAA was a finalist among AMP
Horizons, Ausgrid & Nine Lanterns, the
Capability Group, Maximus Inter national
& NRMA Motoring & Service, while the
Department of Immigration & Citizenship won
the award on the night.
Rod Edge, the MFAA's Head - Professional
Standards, said that being a finalist was
recognition of the hard work, dedication and
passion that was devoted to the creation and
implementation of the MFAA Certified MentorTM
program and Train-The-Mentor program.
"It is rewarding for our program to be
recognised among a list of significant suppliers,
businesses and organisations," he said. "We
were all very honoured to be named a finalist
in this prestigious awards program."
The MFAA and Gadens Lawyers have released
guidance for mortgage and finance brokers
about witnessing documents.
Many documents require a person to witness
the signature of one or more parties. In most
cases, there are no special qualifications
required to act as a witness other than to be 18
years or older.
A witness should not be a 'party to the
document'. So if the agreement is between Joe
and Jill, neither Joe nor Jill should be a witness
to any other party's signature. Brokers do
not become a 'party to the document' simply
because they arranged the transaction. A 'party'
in this example is Joe and Jill only.
If a broker signs as a witness to a credit
contract, mortgage or guarantee which the
broker has arranged, and later the customers
want to challenge the transaction on the basis
that they did not understand what they were
doing or that undue influence was applied to
them by the broker, there is a risk that the
broker will be drawn into litigation and could
be liable for any loss to the lender arising from
the broker's conduct.
Many brokers are willing to accept that
risk, but they should also ensure that their PI
insurance covers this risk. Brokers should check
with lenders to ensure they do not have a rule
preventing brokers from witnessing documents
relating to mortgages they have arranged.
Brokers should not witness documents
when it appears that customers are unclear or
uncertain about what they are doing, or when
undue pressure is being applied to the customer.
In those cases, suggest that they see a lawyer
or financial planner to arrange the document
to be explained and for their signature to be
Quite apart from the rules relating to
witnessing mortgages, there is a requirement to
identify mortgagors in Queensland, New South
Wales and Western Australia. The rules are
quite different between the three states.
More information can be found on the
MFAA's Member Centre under Legal and
Compliance Resources via ww w.mfaa.com.au
limitations and risks
Brokers should not witness
documents when it appears
that customers are unclear
or uncertain about what
they are doing, or when
undue pressure is applied ...
The following r ules apply for witnessing
mortgages over real estate:
Queensland and the Northern Territory:
brokers cannot witness. The witness must be
one of a special class of authorised witnesses.
New South Wales: the witness must have
known the mortgagor for 12 months or
have taken reasonable steps to identify the
mortgagor. Usually mortgagees will send out a
witness certificate of identification.
South Australia: the witness must know
the mortgagor personally or have satisfied
themselves as to the identity of the mortgagor.
The MFAA congratulates
the following elected
• Ray Dib*
• Jeana Scott
• Andrew White*
• Laurie Duffus*
• Cynthia Grisbrook
• Barrie Henman
• Mitchell Blackburn*
• Brenton Rolton*
• Amanda Scott*
• Chris Carn*
• Deena Janes*
• Warren Prince
• Sarah Wells
• Lance Cure
• Ross Taylor
• Damian Vout
• David Devenish
• Marco Meloni*
• Tony Versace*
*New Councillors in 2012.
MFAA: Finalist in national training awards
APPOINTED TO THE
Four of Australia's leading
mortgage and finance
industry performers were
recently appointed to the
MFAA National Board.
Darren McLeod, Head
of Third Party at Firstmac
Home Loans in Brisbane;
Marco Meloni, Principal
of Choice Home Loans
Grisbrook, Principal of
DLV Finance Solutions in
Melbourne; and Tim Brown,
Chief Executive Officer of
Vow Financial in Sydney.
Leedham, said "We as an
industry will deal with
a number of significant
regulatory and market
challenges over the next
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