The FSA's team working on its Treating Customers fairly team will switch its focus to mortgages within four months, according to Association of Mortgage Intermediaries director Chris Cummings.
Speaking at a debate about mortgage regulation at Money Marketing Live in Manchester last week, Cummings revealed that the FSA will be looking for volunteer firms which the TCF team will visit to get a better understanding of the mortgage market.
Panellist Mortgageforce managing director Rob Clifford told brokers they should watch out for this phase of TCF but that the initiative is more likely to be an issue for lenders than brokers.
He pointed out it would be hard for brokers to treat customers unfairly as they do not produce the products, saying market forces ensure brokers do not charge a 5 per cent fee.
MCCB compliance director Richard Fox said the mortgage industry has always treated customers fairly, with the issue being covered in the past by the OFT and the Consumers' Association. He said the FSA is bound to police the issue now it has come under its remit.
Cummings said: “Treating Customers Fairly is not going to impact on us quite yet. It is a matter of three to four months when the team will come in and look at firms. They admit they do not understand the mortgage market.”
Clifford said: “We are going to hear a lot more about Treating Customers Fairly. The FSA's report on the issue said there remains something to be desired in the way financial services companies treat consumers today.”