Number of expelled mortgage brokers doubles to eight in past year: MFAA

Eight mortgage brokers have been expelled by the Mortgage & Finance Association of Australia (MFAA) over the course of the 2011-12 financial year.

This is double the number of brokers expelled in the previous year, with the majority of expulsions due brokers engaging in serious misconduct through submitting fraudulent loan applications to lenders.

“The numbers of expelled members are minuscule compared with our total number of 11,200 members, however the number is still double those expelled in the 2010 financial year,” says MFAA chief executive Phil Naylor.

“The increased expulsions demonstrate the MFAA's determination to ensure the highest professional standards of our members, as well as a strict and independent disciplinary procedure and very high education standards,” he says.

The MFAA has a set of disciplinary rules to deal with complaints of alleged misconduct against an MFAA member, initially involving an external investigating officer, who then may refer the matter to the MFAA Tribunal.

The MFAA Tribunal has the power to impose various sanctions on a member for misconduct, including expulsion from membership of the MFAA.

Naylor says mortgage brokers are a vital channel for home loans, with a 42% share of the mortgage market.

“On this basis, we need to enforce strict rules on our members to ensure they deliver the best possible service and customer protection,” he says.

A list of expelled members is provided on the MFAA website.

Since 2008 the MFAA has been publishing reasons for its expulsion decisions.