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Complaints data vindicates broking industry: MFAA

by Charbel Kadib5 minute read

The latest AFCA data is further evidence that misconduct is “certainly not” at the core of the broking industry, which continues to produce a “high-quality of outcomes” for consumers, according to the MFAA.

Earlier this week, the Australian Financial Complaints Authority (AFCA) published data for the six months to December 2019, which found that the number of mortgage-related complaints rose by 20 per cent when compared to the average monthly figure in the previous reporting period.

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Despite this, brokers only represented 15 of the 2,201 progressed home loan complaints made by consumers.  

This equated to 0.68 per cent of all complaints made in relation to home loans in the six months to December 2019, down from 0.74 per cent in the previous reporting period.

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In comparison, lenders (including banks, building societies, and non-bank credit providers) accounted for 93.5 per cent of all complaints made in relation to home loans.

Reflecting on the data, CEO of the Mortgage & Finance Association of Australia (MFAA) Mike Felton told The Adviser that the result was a testament to the broker proposition.

“The AFCA data on complaints is a great credit to our industry and continues to point to the high quality of outcomes that brokers are producing for their customers and shows that misconduct is certainly not at the core of our industry,” he said.

Mr Felton added that such figures aided the sector over the past few years as it battled regulatory probes into industry conduct.      

“Strong industry data showing low complaints, low arrears, high satisfaction and strong market share provided an exceptionally solid foundation to our defence of the industry during the royal commission and it is very important that we do not rest on our laurels and continue to produce these great results,” Mr Felton said.

The MFAA CEO also revealed that according to the association’s own analysis, the share of complaints against brokers as a proportion of total AFCA complaints remained low over the three months to 31 January 2020.

The MFAA found that of the total 18,256 complaints received by AFCA during the period, just 73 were made against mortgage broker, representing just 0.4 per cent of total complaints.  

This comes as the latest data from research group comparator, commissioned by the MFAA, highlighted growing demand for broker services, with mortgage broker market share increased to 55.3 per cent in the December quarter of 2019, up 0.4 percentage points period-on-period.

The latest property exposure statistics from the Australian prudential Regulation Authority (APRA), also revealed that the value of broker-originated loans over the December quarter increased to $53.4 billion, up from $48.2 billion.

 [Related: AFCA broker complaints remain insignificant]

Complaints data vindicates broking industry: MFAA
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Charbel Kadib

Charbel Kadib

AUTHOR

Charbel Kadib is the news editor on The Adviser and Mortgage Business.

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