The Council of Mortgage Lenders and Mortgage Council Register of Intermediaries have hit out at the Consumer Association for being premature in branding the mortgage code a failure.
They say the voluntary code which was launched in July 1997 has not been in operation long enough to be judged a success or failure.
They say the code needs time to work out a compliance strategy and are waiting for the results of the Better Regulation Task Force which is due in July 1999 before implementing regulatory changes.
CML director Michael Coogan says: "We are making progress all the time and believe that the voluntary code is more flexible than regulation to adapt to changes."
MCRI director David Thompson says: "How can the Consumer Association say the code has failed when it was only set up for intermediaries in April of this year.
We are however responding to their demands to toughen up sanctions which will hopefully be put in place by April 1999."