The Purpose of the MFAA

The Mortgage and Finance Association of Australia is also known as the MFAA. It’s main purpose is to protect consumers from unscrupulous operators in the finance industry by maintaining professional standards among its members.

The MFAA has previously been known as the Mortgage Bankers Association, the Mortgage Industry Association of Australia, and the Mortgage Industry Association of Australia, and it was first established in 1982. There are currently around 12,000 members of the MFAA who carry out various functions within the finance industry. These include mortgage brokers, finance brokers, lenders, credit unions, mortgage managers, solicitors and valuers.

One of the main objectives of the MFAA is to promote best practice within the finance industry with the intention of providing consumer protection. Since the GFC, it has emerged that the finance industry around the western world has not upheld best practice within a minority of its participants. Some mortgage brokers have been booted out of their professional bodies for bad practices, and in more serious cases, some have been jailed for fraudulent activities. The MFAA attempts to curb this bad behaviour by threatening to kick members out who engage in unscrupulous behaviour.

One of the ways the MFAA promotes good practice is through another of its other main goals - the provision of education. A Brisbane mortgage broker, for example, need to undergo some formal training before entering the industry and also need to maintain continuing professional development once they are advising clients.

The MFAA also sets and enforces standard of behaviour amongst its members. The standards of behaviour are set as another tool for protecting consumers. These standard govern members’ behaviour both inside and outside of working hours. For example, if a mortgage broker is found guilty of a criminal offense that does not involve finance, they may still have their membership revoked as their behaviour is deemed inappropriate for the finance profession.

Attaining membership in the first place also involves going through a vetting process. The vetting process includes a credit check and a police check. Members must also have professional indemnity insurance to cover them for losses that may occur through poor advice. Members must also be a part of a dispute resolution service such as the Credit Ombudsman Service Limited (COSL), or an approved equivalent.

There are three levels of membership for mortgage brokers; full membership, Accredited Mortgage Consultant (AMC), and associate membership. A member must be accredited as an AMC to be allowed to conduct lending activities.

There are several internal bodies that set and enforce policies – the State Councils, the National Committee, and the State Committees. There is a member handbook available that contains information on The Code of Practice, the Constitution, Disciplinary Rules, Advertising, and Remuneration Guidelines, among others.

If you are looking to use the services of a Brisbane mortgage broker, you should first check to see if they are a member of the MFAA. If they are a member you can be confident that they will act in your best interests. If you use the services of a mortgage broker and you feel they have given bad advice, you should contact the MFAA.

Come and visit a Brisbane Mortgage Broker when searching for finance for your property. Contact us at http://www.moneynet.com.au/ today http://www.moneynet.com.au/