Why no many brokers are a PIPA member?

Hi everyone!

I found out about "The Property Couch" podcast early this year and I listened to all the podcasts in less than one month! I really liked it and I honestly believe both Bryce and Ben are knowledge, experienced and provide sound information. In many of their podcasts, they mentioned - "talk to a investment savvy mortgage broker" and work with a professional that is a PIPA member (Property Investment Professionals Australia)

I have worked with a mortgage broker two years ago when I bought my PPOR. Although he always answers our enquires promptly and has provided a good service so far, I don't think he is a "investment savvy mortgage broker" - so I decided it was time to search for a professional that would suit our needs best.

None of my close friends are property investors, so i decided to follow The Property Couch hosts advice and search for a broker that was a member of PIPA. - I thought that was a good start.
I was very surprised that my search (Search for brokers near PostCode 2000 up to 25 km) only returned 7 results! I was expecting to get at least a few dozens.

Although I haven't got in touch with any broker from PC yet, I can appreciate the effort they put to answer our questions and build a great knowledge source in this forum. So my question here is "Why no many brokers are a PIPA member ?" Isn't the membership valid enough to the market to justify the effort in getting it?

Thank you!

 

Its an additional cost and serves no licencing purpose. That is being a member doesn't allow a broker to do anything extra. It would be just for marketing reasons.

I wouldn't mind becoming a member, but I already have to pay for at least 3 professional memberships and it all adds up.

 

Thanks @Terry_w - I imagined that was the case

 

Here's the overview of the accreditation program...
http://www.pipa.asn.au/images/files/PIPA Accreditation Program Overview 2012.pdf

I've fairly certain my existing training and experience covers this quite adequately. As Terry indicated, it's nice for marketing purposes but there's little in there that you can't get out of a few books and experience working in property related industries.

 

I did look into it but decided it wasn't worth it - $3k for that, or $3k to actually learn something new is a very easy choice to make .

I have never even once had anyone ask me if I was a PIPA member.

 

Depends partly on the view of what a mortgage broker should do. Having professional organisations are great as they legitimise an industry and generally push education standards forward. I would assume most brokers here aren't on that list because of its limited value proposition (marketing vs actual learning).

IMO mortgage brokers role will continue to push towards being advisers about credit. More tech firms, regulation, commission cuts, etc will increasingly push our roles here over time, as its essentially where our value add is.

Brokers are actually at the coal face of educating consumers and pushing financial literacy and debt education forward in Australia.

IMO there's an education gap in the training levels required to become debt & finance advisers. Basic training requirements don't really focus too much on the role of debt, how it works, risks, management, etc. There generally about compliance requirements, getting a loan through, etc. Some of this is essential to processing, but it does miss the beat on what the actual real value add of a broker is. At the end of the day we're finance professionals, so IMO there should be more focus on actual finance training to lift our industry forward. Place a few more credit knowledge/experience benchmarks and you'll have fewer part time mechanic/part time brokers, and generally better quality advice on the whole.

 

Agree with Terry. 4 Professional memberships 2 Credit Licenses & an AFSL all adds up.

To join something with little benefit to clients seemed rather pointless.

 

I know someone well known in the SMSF space. They setup their own organisation and tout how they are members of the "XXXXVVVYYY".

Like a private club to look impressive and with few other members.

I would think word of mouth referral is a far better way to determine expertise rather than a membership. I believe Groucho Marx said - He wouldnt want to be a member of any club that allowed him to be a member.

 

I'll concur as well. I was keen to join until I saw the cost and checklist of requirements. Same with the FBAA It should be a simple process to join but they make you get police checks etc etc. No thanks.

 

Police checks are normal these days. All our staff must have them for our AFSL safeguards as part of our PI. I once worked at a major bank in Treasury. In my first week they employed a conman who stole wallets and was arrested in the dealing room when Vic Police came to enquire into why he sold a State Bank of Vic car from his prior job two weeks earlier. Then they found all the wallets and IDs of his colleagues hidden in his house. So much for checking his CV

 

Come on Marty, that crime you committed many years ago shouldn't hold you back!
(just joking).

Doesn't the MFAA require a police check? I think we have to do one every year now, which is annoying.

 

But if that was his first time getting caught the police check wouldn't have helped.

 

I renewed in April, no additional check was required.

You definitely need a police check to enter the industry though.

 

BankWest have your accreditation lapse when no apps for six months, then to be re accredited, need a police check.

 

Since when? I don't use them much but mine hasn't ever lapsed?

 

I haven't used bankwest in more than 12 months.

 

I have done one in the last 12 months, but prior to that it had been a couple of years. I'm still on their accreditation list.