The Finance Brokers Association of Australia (FBAA) has announced the formation of a vendor finance steering committee to bring vendor finance into the mainstream and fully represent the interests of the sector.
The committee, overseen by FBAA chief executive officer Peter White, will include real estate vendor financiers and other industry professionals.
Mr White said it was time vendor financiers were fully represented.
“The FBAA is already working on PI insurance issues for vendor finance brokers and will continue to advocate for the industry in discussions with various authorities,” he explained.
“I believe the new committee will promote better mutual understanding between all industry participants.”
Vendor Finance is Australia’s oldest form of property lending, dating back to the 19th century. It was Australia’s main source of residential property finance until other lenders entered the market later in the 20th century.
Large parts of well-known suburbs, such as Chatswood in Sydney and Sandringham in Melbourne were sold in the early 1900s using vendor finance.
Mr White said since vendor finance was reintroduced to the residential market place in 1998, it has encountered significant market growth.
“It is now regarded as an alternative lending source for residential and commercial property, particularly for borrowers not able to source traditional lending.”
He said that with the advent of professional licensing, the FBAA is offering vendor financiers the benefits of representation by an industry association with the ability to work on their behalf on issues directly affecting them.
“Now that the steering committee is approved, the FBAA looks forward to working with a group of industry professionals who add diversity to the finance market place.”