The FBAA will not consider a merger with rival body the MFAA, and the industry is in fact better off with two separate representative associations, according to FBAA president Peter White.

Reacting to assertions published yesterday by Australian BrokerNews from Liberty Financial executives that a merger between the MFAA and FBAA would be desirable, White said the associations would continue to "stand apart", and that this was 'good for the soul' and for the industry.

"The differences between the two associations mean we won't come together at this point in time, and I don't think that is a wrong thing - it's a very good thing, because we speak with different voices," he said.

White said claims that the vast majority of mortgage industry participants hoped the two bodies would eventually come together was a "gross generality". "This is completely fanciful in my mind. Yes, they [the associations] are similar, as they are part of the same industry, but they have two voices," he said.

White moved to dismiss the perception there is animosity between the two. "There is no animosity - by definition animosity means strong hostility, and nothing could be further from the case," he said.

Instead, White said the FBAA in fact has an "open dialogue" with the MFAA on issues of shared interest, and that the FBAA would continue to be open to such discussions - and potentially working mroe closely with the MFAA - where the associations had commonality.

However, he said the case for a merger between the two bodies had weakened over the past decade, and has ruled out the option for the future.

"Today, there is greater depth as to why there are two industry associations than there was 10 years ago," White said. "We see that every day with our membership numbers - we are seeing solid, strong growth, because people want a choice," he said.

White said likened the concept of a merger to the disappearance of either of the supermarket giants, Coles, or Woolworths, which he said would result in the domination and control by one body.

According to White, the FBAA continues to have credentials that set it apart from the MFAA. He pointed specifically to the association's engagement with the Federal Coalition at both Senate and Ministerial level, which he said is "not surpassed by anyone in this industry".

"Also, if it wasn't for the FBAA, you wouldn't have a fact sheet coming out on LMI. It was the FBAA that was the sole voice raising concerns about the lack of disclosure to consumers on what LMI is all about," he said.

In regard to education, White said the FBAA will continue to match the requirements as set out by law, and regulated by ASIC. However, White said that he was all in favour of higher levels of education.

"My comments have always been that we encourage everybody to do the Diploma if they so choose - I would do it, because I would want to be a cut above the next bloke," he said.

However, he said the industry was broader than just home loans, and that the FBAA aimed to cater for the entire industry, rather than "just picking one segment".