1500 dropped from MFAA

The Mortgage Finance Association of Australia said it dropped 1500 brokers from its membership because the brokers failed to update qualifications in line with association policy.

In 2007 the MFAA resolved that brokers must hold a Certificate IV in Financial Services (Finance and Mortgage Broking). Regulations for the licensing of credit providers are likely to require this standard when they come into force over the next two years.

Major broking groups already require their staff and affiliates to hold this certificate, or better, so the brokers dropped from the MFAA would all work with smaller broking firms.

There are also other industry associations that compete with the MFAA for the support and fees of mortgage brokers.

Phil Naylor, chief executive of the MFAA, said membership peaked at 13,800 in recent years and was down to 13,000 before dropping 1500 this week.

He said the association received about 150 applications for membership each month.