A strategic committee looking at options for the mortgage industry's future has decided an industry specific body is needed rather than joining with a larger umbrella group such as the Financial Planners and Insurers Advisers Association.
New Zealand Mortgage Brokers Association (NZMBA) chairman Brian Berry told the association's annual conference the committee’s feeling is that the industry is sufficiently large to warrant a specific organisation.
"We might get lost in other political aspects that aren’t really related to our industry if we went to the FPIA," Berry said.
Such a model would probably also be inefficient. "The interests of brokers still need to be looked after in whatever model we end up with. We need to keep a separate voice for brokers within the industry umbrella," he said.
On the other hand, "to get the ear of government, we have to have a larger industry association."
The NZMBA is considering evolving into a wider body similar to the Mortgage Industry Association of Australia which will also include lenders and lenders’ mortgage insurers, although "it’s certainly not a done deal," Berry said.
The NZMBA’s membership currently is approaching 600 members, up from 327 a year ago, with many new applications coming from existing brokers.
"The broker market has recognised the valid role the NZMBA is playing in the industry," Berry said.
He predicts that the percentage of mortgages coming through brokers will rise from about 28% currently to about 35% over the next 12 to 18 months.
Nevertheless, the NZMBA is looking at tightening membership conditions to make it more difficult to join as part of its drive to lift industry standards, Berry said.
