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 …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 …show more content…
• Dispute resolution, for example, members must ensure that their complaints contact person has the authority to determine and respond to any complaint made by a customer; also, members must ensure that a complainant is treated courteously when making a complaint; further, members must not impose any fee in relation to a complaint on a customer who makes a complaint.
• Money held on trust, for example, members who receive trust money must promptly deposit that money into a trust account maintained by the member with an authorised deposit-taking institution; also, members must promptly account for any money held in trust which has become payable to third parties; further, members who hold trust money must keep such books and records that correctly record and explain the transactions in the trust account and have the account audited by an independent external auditor at least