Enforced MFAA membership splits industry

There is major division between Australia's biggest brokerage groups as to whether MFAA accreditation should be compulsory for brokers.

Last week, The Australian Competition and Consumer Commission announced that it would review lender and brokerage third line notifications which require brokers to be a member of the MFAA.

At present Mortgage Choice and Aussie, along with a number of lenders, have third line notifications in place.

According to the ACCC, these third line notifications were put in place on 4 March 2008.

But with the new legislation now in effect, ACCC has moved to review whether or not the mandatory MFAA membership was necessary.

Speaking to The Adviser, Aussie chief executive officer Stephen Porges said he stood by the third line notification and had no plans to review Aussie's stance on compulsory MFAA membership.

"This is a professional industry. And every professional industry needs a professional body. Brokers that are a member of the MFAA are proving that they are professional and are improving the standard of the industry," he said.

"We think we are a leader in the mortgage broking space and we want to remain that way, which is why we have no plans to change our current situation."

But while Australia's largest branded businesses staunchly back compulsory MFAA membership, other players in the industry have a different stance on the matter.

AFG, Australia's largest independent aggregation group, believe brokers should be given a choice.

AFG's general manager Mark Hewitt said while the MFAA will always play an important role in the industry, membership should not be compulsory.

"While being a member of the MFAA provides brokers with validity, I don't think all brokers should be forced to be a member. Instead they should be given the right to choose," he said.

If you are a broker, what are your thoughts? Should MFAA membership be enforced by brokerage groups or lenders?

Have your say on The Adviser's latest straw poll.