Mortgage brokers under more scrutiny
Members of the Mortgage Industry Association of Australasia have approved the setting-up of a new disciplinary tribunal which will have the power to eject members if they behave inappropriately. The tribunal will also be able to eject or suspend members or organisations that breach the MIAA's code of conduct or its constitution.
The tribunal will not be empowered to award compensation, however. That role will be continued by the Mortgage Industry Ombudsman Scheme. The new tribunal follows a damning report on the industry by the NSW Consumer Credit Legal Centre. The report, commissioned by ASIC, found there widespread problems in the industry such as brokers not revealing commissions to customers and giving poor advice. The Australian Consumers' Association welcomed the establishment of the tribunal, saying it showed that some participants in the industry want to improve their image.