MFAA cancels memberships of 1,100 mortgage brokers

Australia’s peak mortgage industry body, the MFAA has cancelled the memberships of 1,100 mortgage brokers for failing to meet new education requirements.

The terminated brokers failed to obtain a Diploma in Financial Services (Finance/Mortgage Broking Management) or equivalent qualification necessary to become MFAA Credit Advisers.

This constitutes more than 10% of the MFAA’s 11,000 strong member base.

It almost cancels out the 1,295 new members who joined the industry body over the 12 months to June 2012, the most recent MFAA annual report revealed.

In May 2012 the MFAA extended deadline for completing the diploma from June 30 2012 to January 31 2013.

The MFAA introduced the higher educational requirement in 2009.

Brokers need to obtain the qualification in order to continue membership with MFAA and use the accreditation of now being an MFAA Credit Adviser. 

“All members have been reminded of this required standard many times over the last 12 months, following the MFAA National Board's decision to actively demonstrate that members have high standards of professionalism and qualifications with consumers and regulators,” the MFAA said.

"We are very pleased that more than 88% of our members are now qualified to use the new accreditation MFAA Credit Adviser, with expectations that many of those whose membership has been terminated will seek to have it reinstated within the next two months by providing evidence of the required education qualifications, “ said CEO of the MFAA, Phil Naylor.

"It is very important that the sector, which now delivers more than 40% of mortgages in Australia, continues to show leadership in professional education, standards and compliance, negating the need for any further government intervention and regulation.

"With this sector providing home loans worth more than $100 billion this year, MFAA Credit Advisers are now a very important part of the financial services sector and MFAA members can now confidently display and promote their qualifications to their clients.

"I thank all of our members who have attained the new standard and accreditation and urge those who have been slow off the mark to get their diplomas as soon as possible to regain their membership status", he says.