MFAA -

Big Tick for WA Broker Code - Other States Must Follow

The Mortgage and Finance Association of Australia (MFAA) welcomes the West Australian government’s revision of the code of conduct legislation for mortgage and finance brokers operating in the state.

The MFAA’s Western Australian Council has worked closely with the WA Department of Consumer Protection through the review of the code and endorses the new legislation.

WA President of the MFAA, Murray Sebbes, said the revised code gives brokers a clear indication of their role and responsibility, while empowering regulators to take action against those few who choose to operate outside these guidelines.

“We are pleased with the end result, particularly the requirement for increased disclosure to the consumer. It has taken several years to evolve the code to ensure it is workable for brokers and does not add costs to doing business or impede small businesses with unnecessaryred tape,” Mr Sebbes said.

“Western Australia has always led the way for broker regulation and this is another step in the right direction. Consumers in Western Australia can take comfort in the knowledge that brokers in their state operate under the most regulated regime in Australia.”

MFAA chief executive Phil Naylor said today’s announcement by the Minister for Disability Services, Tourism, Culture & the Arts and Consumer Protection, the Hon. Sheila McHale MLA, will help protect consumers and the reputation of all responsible brokers from the unethical and sloppy behaviour of a few rogue brokers.

“This marks a milestone for mortgage and finance broking and we hope it will give impetus to other State and Territory governments to introduce legislation that is in harmony with Western Australia’s code.

“A nationally regulated industry can only be achieved if the rest of Australia adopts legislation that offers consumers heightened protection and a professional and consistent service Australia-wide,” Mr Naylor said.

Pending the introduction of national regulation, consumers in all states and territories can be sure of the highest level of service when dealing with MFAA accredited brokers and members. In addition to strict membership criteria, MFAA members are required to be members of an ASIC approved external dispute resolution scheme and carry professional indemnity insurance.

_{The Mortgage & Finance Association of Australia (MFAA) is the peak body providing service and representation to over 12,000 mortgage brokers, finance brokers, mortgage managers, mortgage lenders (bank and non-bank), and originators to assist them to develop, foster, and promote the mortgage and finance industry in Australia.}