New to industry and new to broking entrants with less than two years’ finance/lending knowledge and experience will require a Mentor. Mentoring is the relationship between a Mentor and a Mentee that provides structure, systems, processes, clearly defined and measurable outcomes, and support for the first two years when a Broker is starting out. For new Brokers, mentoring is also a requirement of the industry bodies and Lender partners will require confirmation of the mentoring arrangement.
Role of a Mentee
The role of a Mentee is to engage with the Mentor over the first two years of their finance broking career. A Mentee must undergo a Mentoring program in which they should take the opportunity to take notes, have conversations and ask questions. Mentees and Mentors need to document the outcomes of their discussions and meetings. Brokers who have had previous experience in the industry may have reduced Mentoring period approved. This will be reviewed on a case-by-case basis.
Role of a Mentor
A Mentor needs to have at least four years of finance broking experience under their belt. They are required to be approved through their industry body (MFAA/FBAA), Lender partners and Connective.
A Mentor must observe that the Mentee can demonstrate competence and then sign off on their evidence. Their role would include reviewing files and having discussions with the Mentee about responsible lending obligations, the Best Interests Duty and NCCP requirements. This also extends to building sound compliance processes, business development and the fundamentals of becoming a good Broker. The Mentor must be completely satisfied that the Mentee is fully compliant with the NCCP, BID and responsible lending obligations.
At a minimum, a Mentoring program should include:
Explanation of the practical elements of customer engagement and loan writing
Ongoing provision of guidance on lending scenarios, types of loan products and their characteristics, the loan process and loan features
Assisting the Mentee to submit high-quality loan applications
Vetting loan applications prior to submission and conducting quality assurance checks
Helping the Mentee understand the industry, key relationships, and overall responsibilities
Lead generation, marketing and advertising
Understanding the economic environment
How to build network and referral partners
As a mentor, you can help your Mentee by:
Showing commitment to their business: If your Mentee has another job, make sure they allocate time to grow and invest in their mortgage business. Most new Brokers that fail or leave the industry are usually because they don’t assign proper time to grow and develop their business. Set realistic expectations!
Engaging your Mentees in the process: Engage your Mentees in the mentoring process by running loan scenarios or workshops. This information is a great way for both Parties to evaluate how the Broker and their business is performing, and discuss growth strategies and process improvement.
Never compromising: As a Mentor, you should never comprise your own standard. ‘Don’t let the fear of setting your bar too high cause you to set your bar too low!’
Remember, mentoring is a two-way street! Set up two-way commitments. Holding both parties accountable in meeting certain obligations and goals throughout the program ensures Mentees have direction, can achieve attainable goals, and have ‘skin in the game’.
Surveys and Attestations
On a quarterly basis, both the Mentor and the Mentee are required to complete an attestation that is distributed via email from Connective. This attestation confirms their ongoing relationship focused on the professional development of the Mentee.
A Mentor can have multiple Mentees at any one time and if at any stage either Party is unhappy with the Mentoring relationship, they can end their Agreement. The onus is on the Mentee to arrange a new ‘approved’ Mentor under a new Mentoring Agreement as soon as possible.
Completion of Mentoring period- Connective Credit Representatives
Where the Mentee is a Credit Representative, Connective will complete file reviews during the mentoring period and at the completion of mentoring. The file reviews assist in evidencing the Broker has met their compliance requirements and regulatory obligations and the results of these reviews are to be discussed with the Mentee and Mentor.
The Mentor will be required to provide Connective with a copy of the industry body Mentor Declaration Form at the completion of the mentoring period.
How do I become a Mentor?
To be a Mentor through Connective you are required to: -
Have a minimum of four years of relevant experience
Be able to meet the requirements of your relevant industry body and Connective
Evidence of a high level of compliance with Connective.
When the potential Mentee becomes a member of Connective, they will have to elect you in their applications as their nominated Mentor. In some instances, Connective may request a specific Mentor based on the Mentee’s industry experience.
At this stage, we will ensure you have the relevant experience and meet our requirements. Both the Mentee and Mentor will enter the Connective Mentor Agreement outlining the requirements for both Parties. The commercial terms of the arrangement are between the Mentor and Mentee.
Workshops
Connective compliance runs regular interactive sessions for our Mentors where we cover the requirements of a Mentor and mentee, our expectations as the Aggregator and our compliance requirements in an ever-changing regulatory landscape.
Contact [email protected] if you have questions relating to Mentoring.