MFAA Supports new legistation

Posted by LC Team, Friday, May 22, 2009

MFAA CEO, Phil Naylor told Lending Central that following requests by consumer groups to include in the new legislation a ban on the use of caveats by brokers to secure fees it is now part of the proposal.

The MFAA strongly supports the ban. In a submission made yesterday to the government the MFAA stated that it supports the consumer groups’ lobby to include the ban in the bill.

Affordable Home Loans is not a member of the MFAA. Naylor says that MFAA membership is close to 13,300, 12,500 of which are brokers or broking groups. He calculates that this equals around 75% of all brokers and broking groups in Australia.

Tags: Caveat, MFAA, Phil Naylor

Filed Under: MFAA

3 Comments

Peter May 22, 2009

The MFAA and other industry leaders appear to have thrown themselves behind the new legislation. For the most part I have no problem with the legislation but there is one glaring omission on the part of the MFAA.

I have yet to see any comment on lo doc and no doc loans. Last year the MFAA made numerous comments that the absolute verification of income would kill the lo doc. Some of us were even asked to use a template letter commenting on this (I think challenger sent that one). I’ve yet to see anyone representing brokers (or even lenders) make mention of this issue now that the legislation is becoming clear.

From down here, it seems like the industry leaders have simply rolled over and acceded to the governments wishes (just like they did with commission cuts, appalling service levels, etc…)

Cameron May 22, 2009

The other side to the caveat story is that a caveat can be there to protect your fee and not all lenders pay commission so you need this for those lenders. In this case he should not have claimed for his fee when he didnt provide what the client requested. Brokers lodging caveats for fees is about protecting brokers from dodgy clients and not the other way around. Of course Phil Naylor doesnt support brokers having an agreement to secure their payment as he doesnt want them to earn anything in the event that the loan doesnt settle. Maybe our Membership with the MFAA should be conditional on them actually doing something to assist the brokers to earn a living as having us pay the membership and then have to pay again for every little event doesnt help at all. I have read all 350 odd pages of the new legislation and dont see one part in there that wasnt geared towards the banks so it looks like the MFAA has had as much success with that as they did protecting us from the banks commission cuts. I pray the new legislation lets us vote on our feet with the MFAA as Naylor likes to brag about membership when its not like we are there by choice. Naylor we brokers need to get paid as we have real jobs and do work for our money!!!!!!

Richard May 22, 2009

Gotta love doing tons of work for nothing if the loan doesnt settle or the client gets pinched by a bank.

No broker I talk to is happy with how things are being run by MFAA along with the crap conditions the banks are putting us and our clients through. All in an effort to push clients to the failing branch networks with staff who often dont have a clue what they are doing

I cant believe that they’d be so blind and yet they’re hamstrung at the same time. If anything, MFAA should be organising a national day or week of protest… then the branches will be swamped and backlogged.