Mortgage And Finance Association Of Australia Case Study
Legal practitioners who advise the finance broking industry should have working knowledge of the Mortgage & Finance Association of Australia (MFAA) and its Code of Practice.
MFAA is a national body providing services and representation to professional finance brokers, being mortgage brokers, finance brokers, mortgage managers and mortgage aggregators. Generally, mortgage managers are those who manage credit contracts or leases on behalf of a credit provider or lessor under their own brand, and mortgage aggregators act as a wholesaler between lenders and mortgage brokers.
MFAA has identified that the mortgage and finance industry 's key regulator is ASIC, and other regulators such as the Australian Prudential Regulation Authority can influence key partners in the industry.
MFAA stated that the association’s purpose is to help its members be recognised as trusted …show more content…
• Contracts with customers, for example, brokers are required to record the essential terms of an agreement to provide services to a customer; also, members must express written terms and conditions of their services in plain language in English.
• Arranging credit, for example, members must always disclose to customers all relevant details known to the member about a proposed credit application; also, members must always make such enquiries as are reasonable in all the circumstances to determine a customer’s capacity to service any proposed credit.
• Outcome of application for credit, for example, members must advise customers of the outcome of a submitted credit application, whenever practicable, within two business days (but in any case, promptly), of the decision being notified in writing to the member by the credit provider to which the application was