The independent mortgage broker market could be wiped out if the FSA goes ahead with plans to make lenders police intermediaries.The Association of Mortgage Intermediaries says the regulator is trying to pass responsibilities to police brokers on to lenders under its treating customers fairly regime. Director general Chris Cummings is calling on the mortgage industry to stave off the threat and he wants talks with the Council of Mortgage Lenders and the Intermediary Mortgage Lenders’ Association to help persuade the regulator to rethink its strategy. Cummings says: “It would be anti-competitive and change the balance of power. If we get this wrong, it would be the death of the independent intermediary sector.” The concerns are that the cost of policing brokers and the burden of being responsible for advice will see lenders moving to the direct route. Accord Mortgages managing director Linda Will says FSA examples of good and bad practice under treating customers fairly indicate lenders policing inter-mediaries is used an illustration of good practice. Cummings says that the FSA’s 2006 Financial Risk Outlook also makes similar suggestions. Will says: “I do not think the FSA ever thought that they would end up with as many regulated firms and how difficult it would be to police them. I think they are using TCF to fill in the gaps where Cob does not work. This could make the intermediary model less attractive to lenders, who will go direct.” The FSA mooted the idea of lenders policing brokers in a June 2001 consultation paper on mortgage regulation which was not implemented.
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Norwich and Peterborough Building Society chief executive Matthew Bullock has been elected chairman of the Building Societies Association. He replaces Nationwide Building Society chief executive Philip Williamson, who has held the post for the past year. Before becoming chief executive of N&P in 1999, Bullock had a broad banking career. Yorkshire Building Society chief executive […]
Money Marketing has great sympathy for Lansons PR and uber Arsenal fan Joe Laing. Having got tickets at the last minute for the Champions League Final last week, the Lansoneer rushed to get the Eurostar in time to get to Paris for the match. After paying an obscene amount of money for his ticket, he […]
Focus Business Solutions has announced the delivery of a new point of sale system for Assurant Solutions to enable lenders and brokers to sell its new mortgage protection product The Matrix.The Matrix offers access to over 250,000 possible policy combinations and was launched in April 2006.Focus director of mortgage solutions Manjit Rana says: “Our business […]
By Felix Wintle, Investment Director & Head of US Equities The most recent communication from Federal Reserve chair Janet Yellen has put the market’s sights on September as the most likely month for the first rate rise. This is due to the stronger than expected economic data of late, particularly in employment and housing, which […]
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A decade ago, I went through the pain of switching utility providers. Deterred by a catalogue of errors, it is only recently, after a house move, that I tried again. I was pleasantly surprised by how easy it was. It has made me think about how complex and expensive it is to switch in financial […]
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