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Brokers need huge admin improvement

Mortgage brokers need to improve their admin drastic- ally if they want to cut costs and avoid incurring the wrath of the FSA.

That was the message from industry experts such as Association of Mortgage Intermediaries director general Chris Cummings at the Mortgage Business Expo.

He said there had been fewer than 350 complaints on mortgages to the Financial; Ombudsman Service since the regulatory regime came into effect last year. Cummings said keeping adequate records was the best recourse for companies if they found themselves under scrutiny from regulators.

Cummings said: “Even if you sell a client a product that has run its course, it is recommended practice to hang on to all the administration for a period afterwards. The best advisers do not necessarily make the best administrators.”

Mortgage Intelligence managing director Sally Laker drew attention to the FSA’s mystery-shopping exercises in sub-prime and self-certification. She said a big potential problem was the fact that mortgage brokers were not properly recording the justifications behind their recommendations.

She said the progress in lenders’ online facilities, particularly in the sub-prime market, had helped lead to greater efficiencies in this area.

Laker added: “Keeping hold of mail and filling out forms online will help resolve the administration problem.”

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