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ACCC allows lending businesses to require MFAA membership

By  |  May 16, 2012

The Australian Competition and Consumer Commission has decided to continue insulating mortgage broker membership arrangements from legal action. The protection is provided through notifications. The notifications require the mortgage brokers of four lending businesses–Aussie Home Loans, Mortgage Choice, ING Bank, and Virgin Money–to be members of the Mortgage Finance Association of Australia (MFAA). The ACCC found that MFAA membership benefits the public, through membership requirements that impose higher educational and professional standards.

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    The required membership would otherwise be at risk of breaching exclusive conduct provisions of the Competition and Consumer Act 2010. The ACCC acknowledged that although MFAA membership restricts choice of professional association for the brokers, only a small number is affected and public harm is minimal. Moreover, MFAA membership is required now only by Aussie Home Loans and Mortgage Choice. ING Bank withdrew its notification and Virgin Money has dropped the requirement.

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    Full content: ACCC Press Release

     

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