The mortgage broking landscape will be very different once licensing comes into play, according to Firstfolio’s chief executive Mark Forsyth.
Speaking at the JP Morgan/Fujitsu Australian Mortgage Industry Trends Report media briefing, Mr Forsyth told journalists that it would be interesting to see what role brokers take in a post-license environment.
“Once licensing comes into play, I expect to see some brokers become mortgage advisers, some move into a fee for advice model and some remain as loan floggers,” he said.
“I believe there is merit in all models. However, I think the majority of the industry will move to a more adviser based role.”
According to Mr Forsyth, legislation should give brokers the confidence to become more than the humble home loan salesman.
And MFAA chief executive officer Phil Naylor agrees.
According to Mr Naylor, brokers that seek and attain accreditation should hold themselves in high regard because they are more likely to be seen by borrowers as trusted professionals, which will result in a greater amount of work.
“Customer perception of mortgage brokers is already at a high level and the new licensing regime to be introduced this year will further raise the professional profile of a mortgage broker,” Mr Naylor told The Adviser earlier this year.
Brokers will obviously be hoping that sentiments such as these ring true, as new data shows the industry’s market power has slipped in recent years.
According to the latest JP Morgan and Fujitsu Australian Mortgage Industry Report, the proportion of new loans written by brokers has fallen from the record highs of 45 per cent achieved pre-GFC, to stabilise at approximately 40 per cent in 2010.
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