Mortgage industry moves further into finance
The question of regulatory oversight of the mortgage broking industry has re-emerged with the Mortgage Industry Association of Australia (MIAA) looking to change its name to reflect the increased involvement of mortgage brokers in writing non-residential loans.
The chief executive of the MIAA, Phil Naylor, said the organisation was looking to change its name to the Mortgage and Finance Association of Australia — a proposal that would be put to members at the annual general meeting late next month.
He said a growing proportion of MIAA members were writing non-residential loans and regarded themselves as finance brokers.
“Some have expanded from mortgages to provide businesses with equipment finance, motor vehicles, medium and large business loans,” Naylor said.
He said legally, brokers were defined by the regulators as finance brokers, with mortgage brokers being a sub-set of this.
“However, as the industry moves towards national regulation and as the Western Australian Code of Conduct for Finance Brokers seems to be the model being looked at, we need to ensure it’s not a one size fits all approach, as equipment and general business finance brokers operate under an entirely different set of dynamics and business class,” he said.
AUTHOR
Mike Taylor
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