TNP plan may scupper NZMBA/PAA tie up
TNP's plans to form its own professional association may scupper plans to subsume the NZ Mortgage Brokers Association (NZMBA) into the Professional Advisers Association (PAA).
Tuesday, February 21st 2012, 6:00AM 
10 Comments
by Jenny Ruth
Mortgage industry leaders, including all three former NZMBA chairmen, are now challenging the NZMBA's windup.
The PAA clearly still wants the plan to proceed but questions both TNP's timing and its move to form another association at a time when the industry is trying to consolidate.
"We're committed to being an impartial, professional association which provides professional benefits and advocacy to government independent of any provider or distribution group," PAA chief executive Edward Richards says.
"TNP is a totally different organisation from a professional association such as the PAA because they're a commercial animal."
Immediate past chairman Geoff Bawden has vowed to rally support to vote against NZMBA's windup - the vote requires 75% of members.
Even before TNP's announcement, Bawden was unhappy with the idea of winding up NZMBA, concerned that it would mean the loss of specialist representation for mortgage specialists - PAA has about 850 advisers as members, about a third of which write mortgages while NZMBA has about 430 members.
But TNP's initiative undermines the goal of having a single industry body. "You cannot have an industry association run by a commercial interest," Bawden says.
Inaugural NZMBA chairman Rob Tucker says he was initially inclined to support the NZMBA/PAA plans for pragmatic reasons.
"But in light of the TNP announcement ... you've got to question virtually everything that's gone on."
TNP's move "is just purely commercial opportunism. I think it's potentially very damaging for the industry," he says.
Like Bawden, Tucker now wants the NZMBA/PAA agreement scrapped and wants to see specialist representation of mortgage advisers maintained.
Brian Berry, who was NZMBA chairman between 2002 and 2004, says the needs of specialist mortgage advisers "can't be looked after properly by a commercial entity."
Because of TNP's plans, "the merger with PAA needs to be challenged. You have to question the bona fides of negotiations with the PAA when this was bubbling away in the background."
| « IFA worried by TNP's new acronyms | KiwiSaver mismatch a 'huge challenge' for advisers » |
Special Offers
Comments from our readers
There were over 9 but due to having to travel to obtain training credits a lot left as they were not compulsury if they joined the PAA.
The 3 remaining members are very proud that they go out of their way to obtain current training and that is our point of difference to our clients.
If the PAA won't support a minimum of at least 6 lender agreements with the adviser as well as compulsory training credits to be a member, then I definatley will not support this merge.
If the merge goes ahead, then I personally feel this will be a step backwards for the clients when it comes to quality Mortgage advice.
What's the bet Mr Pratley ends up with a TNP name-badge soon... just a thought.
According to his Linked-In page, Darren has been Director - Home Loans at TNP since January 2011
Mortgage Advisor since 1991 - you hit the nail on the head! Our point of difference is and always should have been our knowledge, skills, and quality of advice. I would be interested to hear from any individual adviser out there who actually has 6 agencies with different banks, and uses them all to their clients benefit. I know of two banks who will not give agency agreements if you cannot give them a certain level of business each month. As well as being prescriptive, it is stopping us from doing what is best for our clients, and therefore preventing us from fulfilling our obligations under the FMA and 6 step process. I can proudly say that they do not get my business, and won't be bullied by some self-serving corporation.
This is why NZMBA make training credits compulsory (unlike PAA)
All NZMBA meMbers (450) have to hold at least 6 agencies otherwise they can't be members, and when you have more than 6 you do use then all when getting the best lender that fits your clients needs.
For example there is a large group of Mortgage adviser's out there that can only use Sovereign and Kiwibank as lenders.
These people do not meet the NZMBA standards but do meet PAA standards.
The best floating rate they could currently obtain for their clients would be 5.65%,
How ever if a policeman, fireman or accountant walk in their office then these adviser's should be telling them to go to the bank that would give these clients a floating interest rate of just 5%
This would save the client over $7,800 over 3 years if their loan balance was $400,000.
This is the difference of having multiple lenders on your books and this is why NZMBA members have to meet this standard.
Commenting is closed
|
|
Printable version |
|
Email to a friend |
