D Day looms for NZMBA

Thursday is likely to mark a major turning point for the mortgage broker industry in New Zealand.

Tuesday, March 13th 2012, 11:37AM

New Zealand Mortgage Brokers Association (NZMBA) members are being asked to vote on subsuming their organisation into the Professional Advisers Association (PAA) with the aim of creating a stronger industry voice and the ability to better service members of both organisations.

While its logo will be retained within the enlarged PAA, the NZMBA will be wound up, any residual funds returned to members, and its services, such as its continued professional development (CPD) services and its annual awards, will be transferred to the PAA.

The vote needs 75% of NZMBA's just over 400 members to vote in favour and PAA's about 800 members will vote on March 20 on measures to facilitate the amalgamation.

Most in the industry now expect the amalgamation proposal to proceed, although news that TNP was forming its own professional association, breaking just a week after the amalgamation plans were made public threatened to derail it.

That was largely because of the perceived conflict of interest former NZMBA chairman Darren Pratley had because he was also TNP's head of mortgages. Pratley's resignation as NZMBA chairman appears to have defused the opposition.

Geoff Bawden, NZMBA chairman before Pratley, was one of those shocked to discover TNP's plans but now says it's up to NZMBA members to vote as they see fit.

“I'm incredibly supportive of the concept of having one industry body – I always have been.,” Bawden says. “If you believe that they've (the current NZMBA board) got it right, you should vote in favour.”

Interim NZMBA chairman Shaun Riley says the proposed amalgamation “is very reflecting of how the industry's changed.”

The long recession has seen the numbers of mortgage brokers dwindle and more and more brokers have diversified into writing insurance as well, Riley says.

“We won't lose any of that professionalism we've developed over the last few years. The new board will make absolutely sure that won't happen.”

The combined organisation's board will have four NZMBA members, five PAA members and up to two independents, although currently only one, Angus Dale Jones, is envisaged.

PAA chairman Peter Leitch describes the proposal as “a win-win” for both members of both organisations.

“It's an opportunity for the combined professional body to continue to be strong and sustainable,” Leitch says. “As a result of the organisations working together, I think you will see enhanced services and benefits.”

Leitch is hoping the enlarged PAA will also attract brokers who currently don't belong to any organisation.

« HSBC offers lowest one year rate in a decade

To fix, float or take a third option? »

Special Offers