Vast majority of brokers say MMR will fail to meet FSA’s aim
Share
Eighty per cent of mortgage brokers believe that the mortgage market review will not meet the FSA’s aims to have a mortgage market that is sustainable and flexible and that works better for consumers.
In an interactive session run by Platform at the Mortgage Expo 2009, only 3 per cent of mortgage brokers in the audience said the MMR would meet these aims while the remaining 17 per cent were unsure if it would or not.
When asked what specific areas of the MMR that lenders should be lobbying the FSA on, 39 per cent of brokers said the ban on self-cert should be the main priority, while 23 per cent said expenditure verification.
A further 19 per cent said alignment with retail distribution review advice categories should be a priority for lenders.
The majority of brokers thought their share of the intermediary mortgage market would stay the same or increase in 2010, with 34 per cent saying it would increase by up to 10 per cent.
The biggest threat to the intermediary channel was perceived to be restricted criteria and products with 54 per cent agreeing on this.
Dual pricing was felt to be the second biggest threat with 22 per cent of the vote while tighter regulations received 16 per cent of the audience’s vote.
Loan to values came top of the list as the area of lending policy where lenders are most restrictive with 76 per cent, while affordability received 14 per cent.
Accessibility to a decision maker was felt to be the most important element of a lender’s service with 52 per cent of intermediaries saying this. In second place was accuracy and speed of initial decision with 32 per cent.
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
Readers' comments (1)
F-Pack Wooden Spoon Team | 12 Nov 2009 2:32 pm
I'm not sure why the FSA has to poke it's nose into self-cert mortgages. If a lender want to take the risk of lending money then they should make that commercial decision based on their business model and not ask for income at all. The problem is that lenders ask for incomes which as the article says can be inflated. Lenders who wish to be in this market place should not request any income verification at all. Otherwise steer clear of all self-cert mortgages altogether and don't offer them. In which case the FSA has no purpose in this matter and should keep out. I have awarded wooden spoons all round to the FSA and the lenders!
Unsuitable or offensive? Report this comment