MFAA

All About the MFAA

The MFAA is the Mortgage and Finance Association of Australia. It is the main professional body for mortgage and finance brokers in Australia and helps protect consumers by upholding and enforcing professional standards amongst its members.

Established in 1982, the MFAA has previously been known as the Mortgage Bankers Association, the Mortgage Industry Association of Australasia, and the Mortgage Industry Association of Australia (MIAA). The MFAA currently has over twelve thousand members from various lines of work withing 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. The finance industry is not immune to poor practices that can harm customers, a fact that has been widely reported in the media since the onset of the Global Financial Crisis. Several mortgage brokers, for example, have been kicked out of the industry and even jailed for their part in fraudulent activities. All brokers registered with the MFAA must sustain a high level of professional conduct, or they will be have their membership revoked.

One of the ways the MFAA promotes good practice is through another of its other main goals – the provision of education. By requiring their members to undergo a minimum education before gaining membership, and continuing to stay abreast of contemporary issues in the finance market, the industry body helps to ensure their members provide good practice.

The MFAA also sets and enforces standard of behaviour amongst its members. These standards also help ensure that consumers are protected from unscrupulous behaviour of finance professionals. The standards govern much more than best practices while working – they extend to include behaviour outside of work. 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.

All members of the MFAA must undergo a rigorous vetting process to ensure they are suitable to give financial advice to the general public. This process includes a police check and a credit 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.

The policies of the MFAA are set out and conducted by the Board, 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 finance 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 believe they have acted poorly and given improper advice, you should contact the MFAA immediately.

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