Federal government to subsidise MFAA mortgage broker training

The federal government will fund two-thirds of the cost of mortgage brokers obtaining a diploma-level qualification, the Mortgage & Finance Association of Australia (MFAA) has announced at its annual conference currently underway in Adelaide. 

The MFAA will receive $2.4 million as part of the government’s National Workforce Development Fund. 

The money will pay two-thirds of the cost of around 3,000 MFAA members obtaining a Diploma of Finance and Mortgage Broking Management. 

Also at the conference, the MFAA announced that it would extend the deadline for members acquiring the diploma by six months from June 30 2012 to January 31, 2013. 

However, members must have enrolled in a course by June 30, 2012. 

Under ASIC credit licensing rules, loan writers are only required to obtain the less challenging certificate IV in finance and mortgage broking. 

The MFAA requirement is aimed at raising training standards to a higher level. 

The subsidy is available to MFAA members who are yet to complete the diploma and enrol for training by June 15, 2012. 

The MFAA board has decided to give priority for these grants to members who have joined in recent years and will rely on aggregator and broker group for providing particpants. 

Almost 70% of MFAA members have completed the diploma requirement or are in the process of completing it. 

Participants in the scheme will be able to choose from nine MFAA preferred education and training providers. 

MFAA chief executive Phil Naylor says the funding demonstrates the federal government is “well and truly behind MFAA’s efforts to increase education and service standards in the industry” 

“We are hopeful that, following this success, we will be able to provide members with further financial assistance for their professional development in the future,” says Naylor. 

Based on new home lending figures for the March quarter compiled by the Australian Bureau of Statistics, mortgage brokers were the source of $23.4 billion worth of home lending during the March quarter, with annualised lending volumes of close to $100 billion. 

Mortgage brokers provide 42% of home lending in Australia up from 25% a decade ago.