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The MFAA and FBAA have responded to statements that suggest brokers are unprofessional.
Last week, News Limited ran a story suggesting there was a conflict of interest when brokers set their stall up as being “independent” yet aggregate under a brand that is part or wholly owned by a lender.
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“These independent advisers are now in the uncomfortable position of giving advice to borrowers on the product of their own employer, alongside other lenders of course, and taking different levels of sales commission along the way. Did somebody say conflict of interest?” The article read.
MFAA chief executive Phil Naylor said the comments published in the article were not well researched and were in “no way” indicative of the mortgage broking industry.
“Under the terms of the National Consumer Credit Protection Act, brokers are required to find a “not unsuitable” solution for their clients, regardless of which company they aggregate under,” Mr Naylor said.
“The mortgage broking industry is a professional industry with professional brokers who will not hesitate to go above and beyond for their client. They do not offer products based on who they aggregate underneath as this would contravene their responsible lending obligations.”
Mr Naylor’s comments were echoed by the FBAA’s Peter White who said the article was poorly researched.
“The information contained in this article is not factual,” Mr White said.
“It is not well researched and factually inaccurate. As a result, I don’t think we should waste time worrying about it, but rather spend our time meeting the needs of borrowers.”
