Mortgage broker careers can offer a number of benefits, but the first step to a lucrative and fulfilling job as a broker is actually becoming one. Under the National Consumer Credit Protection Act 2009, as well as the rest of what’s known as the Consumer Credit Protection Reform Package, the regulatory and licensing requirements surrounding mortgage brokers are more important than ever.
Brokers, also known as credit assistance providers, are regulated by the Australian Securities and Investments Commission (ASIC) and must comply with its rules regarding licensing.
As of now, all brokers must hold an Australian Credit Licence. By June 30, 2014, in order to be licensed, the ASIC will require brokers to obtain a Certificate IV in Financial Services. There are various mortgage broker courses available that offer training and mentoring to assist with obtaining a licence. Obtaining a licence comes with its own fees, as well as undergoing a criminal background check
Getting a licence is one thing, but in order to be a successful broker, there are other obligations that must be met. Those outlined by the ASIC include stipulations concerning ethical business practices, such as conflict of interest and ensuring clients are not disadvantaged. However, other obligations include being required to belong to an external dispute resolution provider. Additionally, in order to work with some lenders, brokers must also become members of an industry group.
The ASIC also encourages brokers to invest in continued professional development each year. Once all obligations have been met, you can become a part of Australia’s broker community. Data from the Mortgage & Finance Association of Australia shows that nearly half of the country’s home loan market share belongs to brokers, and completing your training and licensing is the first step to grabbing your share.
Contact Redrock Group to find out more about how to build and grow your business by becoming a professional member.