Following on from the federal Treasurer’s comments regarding the value of brokers, the two mortgage broker associations have welcomed his support.
In an exclusive interview with Momentum Media, the federal Treasurer and deputy leader of the Liberal Party Josh Frydenberg said that he believes mortgage brokers have played “a fundamentally important role in providing more competition and choice in the housing market” and agreed that the “best days of the mortgage broking industry lie ahead”.
Noting his support of the industry, the heads of the Finance Brokers Association of Australia (FBAA) and the Mortgage & Finance Association of Australia (MFAA) both welcomed his stance and the government’s engagement with the broking industry.
Peter White AM, managing director of the FBAA, said: “As we are soon to begin the 2022 remuneration review of mortgage brokers, it is reassuring to see the government and the Treasurer continue to strongly support brokers and the role we play.
“As markets twist and turn and interest rates rise, the value proposition of mortgage broker professionals has never been, and will never be, stronger. Brokers are highly valued to borrowers…Competition in the mortgage lending sector is crucial.
“Brokers provide an extremely important service to home loan borrowers across the country, and this will be highlighted further as we get closer to a time that could see interest rates rise and the market become more complicated.
“We thank the Treasurer and the federal government for their ongoing support of our industry.”
Mr White added that the FBAA would “continue to place a high importance on continued dialogue with both the government and opposition to ensure our interests, and the interests of borrowers, are protected and enhanced.”
The chief executive of the MFAA, Mike Felton, told The Adviser that the Treasurer’s comments “reiterate the government’s support for the mortgage broking industry, but also serve to highlight the systemic importance of mortgage brokers to the home lending sector and the broader economy.”
Mr Felton said: “The way the government engaged with industry throughout the reform process, and in the implementation of the unrivalled Best Interests Duty and other key post royal commission reforms, has certainly strengthened the mortgage broker offering.
“The combination of these reforms, and the competition mortgage brokers drive for consumers, should see our industry thrive in a sustainable manner well into the future.
“Trust and confidence in our sector continue to rise, and this confidence is reflected in the consistent growth of broker market share.
“Following these reforms and our industry’s performance within the new regulatory settings, we agree with James Symond that the best years for the mortgage broking industry do indeed lie ahead.”
Annie Kane is the editor of The Adviser and Mortgage Business.
As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts.
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