With the topic of discussion centering around education and qualification requirements for new brokers recently, Graeme Salt reveals his thoughts on the matter.
Shock and bewilderment is what I regularly see from those looking to qualify as a mortgage broker.
And, for some, that shock and bewilderment is going to continue as the industry further develops its professionalism is response to Sedgwick and the ASIC enquiry into broker remuneration.
Much of this will be driven by lenders, such as CBA, requiring brokers to go beyond the minimum legal qualification to become a broker.
We applaud this decision at Walker & Miller Training; in general, we find those who are looking for the cheapest option to become a broker are the least likely to succeed.
Good brokers are those who invest in the best qualifications, continue their professional development and are constantly seeking the optimal solution for their client.
A broker’s journey from innocent first timer to experienced finance expert takes make twists and turns as they develop from student, to mentee to fully-qualified broker. Throughout they need sound education, a good mentor and, above a professional attitude.
At Walker & Miller Training, we see this evolution in depth. It begins with the nervous call from a would-be broker when they realise that they need qualifications that are commensurate with arranging millions of dollars of finance.
It continues during our courses when the penny drops for future brokers about professional standards – particularly their NCCP obligations.
And we see it further evolve as we see students enjoy positive relationships with their mentor.
We always know that our students have succeeded when, a year-or-so down the track, their send their own staff or mentees to us and we can see that business is booming.
We believe that there is further scope to improve professionalism in the industry. And this is key if the consumer is to have greater confidence in brokers – boosting competitions and customer outcomes.
But good brokers don’t need a PhD in Rocket Science; diploma level education plus the right attitude will be key to success.
Two examples I would offer of our successful Diploma graduates:
The latest MFAA Industry Intelligence Service (IIS) Report has revealed that finance brokers continue to facilitate more than one in two (53.6 per cent) of all mortgages written in Australia. And the number of finance brokers in Australia has grown by 3.3 per cent to just over 16,000.
But the MFAA has warned that a growth-rate in brokers which is faster than a growth rate in broker-originated loans may not be sustainable – especially if average incomes reduce.
It is blindingly obvious that it is the well-qualified, professional broker who will survive in this environment.
Good brokers will quickly cope with their shock and bewilderment and accept that they need to go beyond the minimum qualifications to succeed.
The Finance Brokers Association of Australia (FBAA) has reaffirme...
Mortgage broking and finance group Loan Market has appointed form...
The two lenders have made a broad range of changes to interest ra...