MFAA's New Mentoring Standards: A Step Towards Greater Professionalism in the Mortgage and Finance Broking Industry

Introduction

The Mortgage and Finance Association of Australia (MFAA) is a leading professional body representing mortgage and finance brokers, mortgage managers, and aggregators in Australia.

Established in 1957, the MFAA is dedicated to advancing the professionalism and ethical standards of the mortgage and finance broking industry.

As the mortgage and finance industry is constantly evolving, it is essential for professionals in this field to continually upskill and remain updated on the latest industry trends and regulations.

The MFAA recognises the importance of continuous improvement and has recently introduced new mentoring standards to support the development of brokers in the industry.

This blog will explore the significance of the MFAA's new Mentoring Standards and how they contribute to more excellent professionalism in the mortgage and finance broking industry.

We will discuss the importance of continuous improvement in the industry and how the MFAA's Mentoring Standards help to achieve this objective. So, let's get started!

The Mortgage and Finance Association of Australia (MFAA) overview:

The Mortgage and Finance Association of Australia (MFAA) is a leading professional body representing the interests of mortgage and finance brokers, mortgage managers, and aggregators in Australia.

With over 12,000 members, the MFAA plays a crucial role in setting industry standards, advocating for policy change, and providing professional development opportunities for its members.

The MFAA is committed to advancing the professionalism of the mortgage and finance broking industry through continuous improvement initiatives such as education and training, industry research, and professional development opportunities.

Why do we need continuous improvement in the industry?

The mortgage and finance broking industry is dynamic and ever-evolving, requiring brokers to keep up with the latest trends and regulations. The MFAA's new Mentoring Standards are necessary to ensure brokers receive the support and guidance needed to succeed in this industry.

Ongoing improvement helps brokers to stay ahead of the curve and provide their clients with the best possible service. It enables brokers to develop their skills and knowledge, which helps build better relationships with clients and increase their chances of success in the industry.

Furthermore, steady improvement also contributes to more remarkable professionalism in the industry. By upskilling and staying updated on the latest trends and regulations, brokers can provide a higher quality of service and act with greater integrity and ethical conduct.

What is the MFAA's recent review of industry mentoring?

The MFAA recently conducted a comprehensive review of the industry mentoring programs available to brokers.

The review involved interviews, consultations, and focus groups with key stakeholders, as well as benchmarking with similar associations in comparable financial industries.

Based on the findings, the MFAA has developed a set of quality standards and supporting guidelines to provide clarity and ensure that mentors have the necessary skills and experience. At the same time, mentees receive the appropriate level of support and guidance.

These MFAA Mentoring Standards will be launched on 1 July 2023 and reflect the association's commitment to promoting more remarkable professionalism in the industry.

What steps did MFAA take to ensure that the Mentoring Standards would effectively improve the mortgage and finance broking industry?

The MFAA conducted a thorough review of industry mentoring programs for brokers, involving various methods to gather stakeholder feedback and ensure that the resulting MFAA Mentoring Standards would be effective and relevant.

The methods used in the review included:

• Interviews, consultations, and focus groups

  The MFAA engaged with key stakeholders, including lenders, aggregators, practising mentors, and recent mentees, to obtain feedback on the existing mentoring programs and suggestions for improvements.

  The interviews and consultations provided valuable insights into the challenges brokers face during the mentoring process and the factors that contribute to a successful mentoring experience. Focus groups allowed for more detailed discussions on specific aspects of mentoring, such as communication and accountability.

• Research and benchmarking

  Besides the stakeholder consultations, the MFAA also conducted research and benchmarking with similar associations internationally and domestically with comparable professions in financial industries.

  This allowed the MFAA to compare and identify best practices in mentoring programs, ensuring that the MFAA Mentoring Standards would be aligned with industry standards and effective in promoting professionalism in the industry.

The key stakeholders involved in the review were:

• Lenders, aggregators, mentors, and mentees

  These stakeholders are crucial in the mortgage and finance broking industry. Lenders and aggregators provide loans and other financial products to brokers' clients, while mentors guide and support brokers during the mentoring process.

  Mentees are brokers seeking to develop their skills and knowledge through mentoring programs. Their feedback and perspectives were critical in identifying the strengths and weaknesses of the existing mentoring programs and ensuring that the resulting MFAA Mentoring Standards are relevant and effective for all participants in the industry.

What is the purpose of the MFAA Mentoring Standards?

The MFAA Mentoring Standards aim to promote more outstanding professionalism in the mortgage and finance broking industry and provide clarity for all participants in the mentoring process.

The Standards ensure mentoring is a structured, effective, and positive experience for mentees, supporting their professional development and career progression.

In order to accomplish the above motive, the MFAA Mentoring Standards outline the skills and experience mentors should have to support mentees effectively.

Skills and experience mentors should have:

• The mentor must be a current MFAA member.
• The mentor should be experienced in mortgage and finance broking and mentoring.
• The mentor should have completed the Diploma of Finance and Mortgage Broking Management (FNS50322) or its superseded versions.
• The mentor should have at least four years of experience in loan writing or settled at least 50 residential mortgage applications.
• The mentor should have signed references and attestations from current or former employers and aggregators.

The support and guidance mentees should expect from the mentors:

When is the launch date of the MFAA Mentoring Standards, and what will happen to the current list of mentors on the MFAA website?

The MFAA Mentoring Standards will be launched on July 1, 2023. Mentors who wish to continue mentoring under the new standards must reapply and meet the new requirements.

As part of the transition to the new standards, the current list of mentors on the MFAA website will be retired on 30 June 2023 and replaced with a re-launched MFAA Endorsed Mentor program on 1 July 2023.

Current mentors wishing to be included in the refreshed list must apply for endorsement by downloading the MFAA Mentoring Standards and Endorsed Mentor application form.

The MFAA requires that mentors also provide certain additional documents related to mentorship, as outlined below. We have created draft templates for brokers to utilise for this purpose.

• Mentorship program outline
• Mentorship agreement
• Mentorship fees and associated costs
• Grievance (complaints) procedure
• Policy on cancellation, suspension, termination, and refunds

The application process is free for MFAA members, and if approved, mentors will need to follow the new standards for all new mentoring relationships starting from 1 July 2023.

Along with the launch of the new standards, the MFAA will introduce a re-launched MFAA Endorsed Mentor program. This program will provide brokers with a list of MFAA-Endorsed Mentors who have met the new standards and are available for mentees to choose from.

The program aims to ensure brokers have access to high-quality mentors who can provide the guidance and support they need to succeed in the industry.

Are you interested in becoming a mentor or improving your skills as a mentor in the mortgage and finance broking industry? If so, keep reading!

The MFAA is inviting all current and potential mentors to join their refreshed mentoring program, which will be launched on 1 July 2023.

Participating in the refreshed mentoring program comes with many benefits, including:

• The opportunity to contribute to the industry’s professionalisation by helping mentees develop the skills and knowledge needed to succeed in mortgage and finance broking.
• Access to the new MFAA Mentoring Standards, which provide clear guidelines on the skills and experience mentors should have, and the level of support mentees should expect.
• Improved communication and feedback between mentors and mentees, ensuring that both parties get the most out of the mentoring experience.
• The ability to develop your mentoring skills and gain recognition as an MFAA Endorsed Mentor.
• Networking opportunities with other mentors and industry professionals.

So, what are you waiting for?

Join the re-launched mentoring program and help shape the future of the mortgage and finance broking industry!

Final note

The MFAA's new Mentoring Standards mark an essential step forward in the professionalisation of the mortgage and finance broking industry.

By providing clear guidelines and requirements for mentors and mentees, the MFAA is helping to ensure that all participants in the mentoring process have the skills and experience necessary to succeed.

We at Brokers’s BackOffice, a reputed loan processing service provider based in Sydney, are excited to see these standards' positive impact on the industry, and we encourage current and potential mentors to join the new mentoring program.

Additionally, Brokers’ BackOffice provides a valuable resource for brokers to streamline business operations and stay updated with industry developments.

Together, these initiatives demonstrate the MFAA's commitment to supporting the growth and success of its members, and we are optimistic about the future of the mortgage and finance broking industry in Australia.