Becoming a mortgage broker

I though it might be useful for some on the forum to hear about the process from a Trainers perspective.

The Certificate IV is the first step in joining the MFAA as well as the FBAA. In order to deal with the big 4 banks and most of the other lenders you will be required to be a member of one of these associations. The Certificate IV is often the best place to start because your course provider should be able to give you direction in regards to the other accreditation requirements.

(You may also benefit from learning about how the industry works before making career decisions such as: if you should quit your current job; whether or not to purchase a franchise; which aggregation group to join etc…)

In addition to a Certificate IV your MFAA Application you will also require:
– Police and Credit check
– Professional Indemnity Insurance
– External Dispute Resolution
– Initial Compliance Pack (Through the MFAA)

It has been my experience that students who take the time to attend the face to face training sessions obtain a much greater knowledge of the Industry which they are joining and the value that their role is supposed to add to it. The formal classroom seems to be the best way for people who wish to enter the industry to gain their initial knowledge.

The face-to-face training option is obviously the more expensive than the distance options for the student. The associated costs to the training organisation for facilitating face-to-face education are also much higher. From a purely business point of view I can see why the majority of educational providers are now pushing online training, because the associated costs are so much lower and the margins are significantly higher.

While both the distance education and face-to-face course contain the same modules with the same information and eventually the same qualification (Certificate IV), the information does not have the same context as when it is presented in a classroom environment. Form our correspondence with these students we find that a majority of distance learners are learning the information to satisfy the Assessments and Exam, while our face-to-face learners have a more holistic knowledge of the topic and then have no problem satisfying the Assessments and Exam. Education for Knowledge (Understanding) or Qualification (Certificates)?

Once you are accredited you will need to build up a through knowledge of loan products and lending institutions, which can take a variable amount of time depending on a brokers individual  competence, motivation and industry contacts. In joining the MFAA you will be required to have a mentor for your first 2 years of operation who will be there to assist you in placing loan and operating as a broker.

In regards to obtaining this relationship, many brokers obtain a mentor by working for someone else, this is however not the only way of sourcing a mentor. Industry relationships can be built up through aggregation groups, partnering or joint ventures with existing brokers or buying up franchises.

But I have already gone on for long enough; you can email me if you have more questions.

 Lloyd HopkinTraining ManagerWalker & Miller Financial Services[email protected]http://www.walkerandmiller.com.au

Chris and Richard I totally agree with your comments. In my expewrience most brokers can only deal with basic structures and anything beyond the standard type deal becomes too hard. When looking for a broker I firmly believe you should interview a broker like you would a prospective employee. Do not be sucked in by the big brands (this in no way implies the do a poor job) and find a broker that:

1. you feel comfortable with

2. understands your needs

3. understands property investing

4. will partner with you for the long haul

5. obesses about customer service and can make things happen for you

Personally like Richard I also will only commit to a client who does not scheme .

Finally if you feel you need to become a broker because the quality of brokers you have experienced are not great think again. It is not that easy. My advice would be you be better served looking for a broker who meets your needs.

Rgards

Having been stung repeatedly by a broker in the past I totally agree with the new accreditation requirements. I have just gone through the hoops to become an accredited mortgage consultant so that I can assist my clients in property. Yes there are a few things to do to get accredited but nothing like a uni degree. It is a good protection to the consumer. Getting a mentor is not difficult and it is a great way to learn strategies to assist your clients and build a solid business.

Nick

Wouldnt worry about the saturation of Brokers.

If we follow the UK who has lost over 35% of its Brokers since the GFC we should all be ok.

I dont think the new Credit Legislation goes anyway near far enough to whittle out the rubbish.

I have over 25 years experience in the industry and see people ever day of the week advising clients with 3 hours worth of training sessions. Mind you i guess Real Estate is another industry where you can get involved having read a couple of books and watched the odd dvd.

Kong

Does that good reputation include the repeated action ASIC have taken against their founder for misrepresentation Wayne Ormond.

Might like to read the inside page of this months Mortgage Broker for all the comments.

Hi Kong

As well as doing due diligence on the organisation I would also be doing mine on the past activities and history of the principal !!!!

Makes interest reading depending on how long you have known him.

hi guys/girls
i have done cert IV and now i am looking for the mentoring process can anyone please specifically define what should i do next as i am deseperate to start  how can i find a good mentor because i reall want to learn the quality and good business

thanx

We are recruiting and running a series of webinars to explain our mentoring, coaching and industry induction.

www,brokersite.com.au/webinar_registration.htm

Dear Mr Ormond By two posts made on 14 April 2010 (Posts) I made certain statements to a number of people directed at Wayne Ormond The Posts contained serious allegations which I regret having made. I am pleased to take this opportunity to withdraw them. Contrary to the impression which the Posts may have given, neither Wayne nor Refund Home Loans Pty Ltd has engaged in any unsatisfactory conduct. I deeply regret that the Posts may have given any misleading impression about Wayne Ormond. I understand that Wayne has acted in an honest and reputable manner, both professionally and personally. I deeply regret my suggestion that Wayne has acted dishonestly or that he has made misrepresentations that would affect the viability of establishing a Refund Home Loans franchise. I apologise that my suggestion has damaged his reputation and goodwill and has an adverse effect on his business operations. I also apologise for the personal distress and anxiety which misstatements, errors and omissions in my Posts has caused Wayne Ormond, his family and employees. The defamatory imputations conveyed by my statements are withdrawn without reservation and I sincerely apologise for the damage and distress that my statements and similar publications may have caused. 

Yours faithfully   

Richard John Taylor – Director
Taylored Financial Solutions Pty Ltd

$69,000?? wow. And then you give away part of your commission???? wow wow!