No Stress: MFAA Joins ASIC Campaign
The MFAA will join forces with ASIC to combat mortgage stress, it has been revealed.
ASIC has declared September "Mortgage Health Month", and has directed consumers to its MoneySmart website. The site offers consumers guidance and tips to manage mortgage stress, and MFAA CEO Phil Naylor has told Australian BrokerNews the regulator has asked the MFAA to be involved in the campaign.
"ASIC have approached us to support this campaign and we intend to," Naylor said.
The ASIC materials currently do not urge the use of brokers, instead encouraging consumers in financial hardship to approach lenders, consult free financial counselors or contact EDR schemes. However, Naylor said the MFAA's involvement will centre on urging consumers to consult with brokers on their financial situation.
"We will be putting out a release shortly supporting the message in the campaign - encouraging consumers that they will be better off if they take early action when faced with difficulties paying their mortgage. In particular to seek such assistance we will be encouraging consumers to consult with an MFAA approved broker without delay," he said.
While the MoneySmart site does not currently guide consumers to brokers, mortgage brokers do receive a mention on the site, albeit somewhat unfavourable. The site contains a "Smart Tip" for borrowers, saying that brokers are under no obligation to find them the best deal, and that they may be better off dealing directly with lenders. Naylor said the MFAA has urged ASIC to re-think this advice.
"I think the reference to brokers on the ASIC website is a relic of the past before NCCP, and we are requesting ASIC to remove or at least re-word it," he said.