MIAA chief executive Phil Naylor says that three years ago his organisation developed its code of conduct and set up the Mortgage Industry Ombudsman Scheme under which consumers who have the misfortune to deal with an unprofessional mortgage broker who belongs to the MIAA can seek up to $A100,000 in compensation.
"The missing link was what could happen to members of the organisation who had misbehaved. Unfortunately, under our existing constitution, we didn’t have any power to chuck members out," Naylor says.
But two weeks ago members approved a change to the constitution allowing the MIAA to impose the whole gamut of penalties on transgressing members, depending on the severity of the offence.
Under the new system, anyone will be able to lodge a complaint against a broker, not just consumers. But the ultimate aim is that consumers will have confidence about dealing with brokers who belong to the MIAA.
Naylor says he hopes to have the new system up and running by September. "The only delay is that we have to set up the infrastructure to deal with it."
He is currently in the throes of finding an appropriate person to be appointed to role of investigating officer who will investigate any complaints and of finding suitable people who are independent of the industry to sit on a tribunal which will examine and rule on any evidence.
"All the hype and all the thrust is on throwing people out of the organisation, but people do have rights to natural justice. The member has the right to put their case," Naylor says.
