With the backdrop of The Royal Commission into the Banking, Superannuation and Financial Services Industry the Mortgage & Finance Association of Australia (MFAA) conducted an in depth analysis examining complaints, arrears, penalties and the broker channel’s impact on competition to address some of the rhetoric currently surrounding the channel.

The analysis – summarised in this 2-page fact sheet  – found that consumer complaints and arrears rates are in fact very low and consumers’ Net Promoter Score of brokers is in excess of 70 – (where 50+ is seen as excellent), (1) and 92 per cent of customers have reported that they are satisfied with their broker’s performance (1). Additionally we are seeing consumers vote with their feet with around 55 percent of residential lending now originated by brokers (2).

The MFAA work included comprehensive review of complaints to the MFAA, the Credit and Investment Ombudsman (CIO) and the Financial Ombudsman Service (FOS). Some of the key findings included;

• Broker-originated loans written annually have doubled since 2008. At the same time complaints to the MFAA plummeted by 78%.
• Mortgage broker membership of the CIO represents 91 per cent of CIO membership. At the same time complaints about brokers represents just 6.1 per cent of complaints to the CIO.
• Mortgage brokers account for just 1 per cent of complaints to FOS.
• ASIC has made just 15 convictions of brokers between 2010 and 2017, which represents one in 9,000 brokers per annum.

The MFAA’s findings provide evidence that some of the recent discussion is not consistent with the outcomes brokers are providing their clients and the competition brokers create to the benefit of all consumers.

The 2-page fact sheet can be read here.

1. Data provided by aggregators, Aussie and Advantage Group