The Association of Mortgage Intermediaries has hit out at the Mortgage Code Comp-liance Board for stepping up its renewal operations while mortgage brokers are trying to finish their applications for the FSA.
The FSA takes responsibility for mortgage regulation on October 31 and this is the final MCCB renewal period for brokers.
MCCB renewals were due to close on March 31, the same deadline as FSA early registration for direct authorisation. However, as the April 30 deadline for FSA registration approaches, the MCCB has been contacting lapsed members.
The MCCB warns that firms need to renew as MCCB-registered lenders will only accept business from MCCB-registered intermediaries in the transition to FSA regulation.
It also warns that the FSA says in order to benefit from due credit arrangements in FSA authorisation, firms need to keep MCCB registration until October 31 and that firms which are not MCCB-registered will be “subject to additional scrutiny”.
But many brokers believe that the MCCB should be more flexible during this time of change.
AMI director Chris Cummings says he has had complaints from members over the pressure that the MCCB has put on them to renew.
Cummings says: “We have had reports of the MCCB stepping up their renewal operations. They are as vigorous as ever and are even stepping up the pressure on brokers.
“With mortgage intermediaries currently having to file applications with the FSA for regulation, this is unfortunate timing and insensitive.”
A spokeswoman for the MCCB says: “Firms must now take steps to secure their future by implementing their chosen approach towards FSA authorisation and additionally renewing their MCCB registration, which is a key element of the FSA due credit process.”