"The association is all about setting minimum standards and lifting standards," Tucker says.
He was responding to criticism of the association by Miranda Caird, head of Mortgage Choice in New Zealand.
"We will have problems with our membership, there’s no doubt about it. But by having them as members we can publicly discipline them, punish them or expel them," Tucker says.
He strongly rejects Caird’s suggestion that the industry should have legislated regulation. "The moment that happens, everyone’s in trouble. It has to be driven from within the industry." That’s the whole point of the association which has been going four years, he says.
Currently, mortgage brokers aren't covered by any form of regulatory control and anyone can call themselves a broker. About half New Zealand’s mortgage brokers are association members but Tucker says the numbers are growing.
"The industry has grown and there are a lot of players in the industry who are less than professional. Thank goodness, 99.9% of those are outside the association," Tucker says.
By joining the association and agreeing to abide by its code of conduct, brokers are indicating they want to be professional, he says. In time, if there are problems in the industry it’s likely the public will only want to deal with association members.
Tucker says the association has the support of the banks and other mortgage lenders.
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