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CML anger at &#39absurd&#39 monitoring proposals

The Council of Mortgage Lenders has slammed the FSA for proposing “absurd” regulations forcing lenders to monitor the product information shown to borrowers.

The CML, which recently sought clarification from the regulator over the matter, is angry that the FSA is pushing ahead with rules which it claims are impossible for lenders to enforce.

The proposals, due to take effect at N3, give lenders responsibility for guaranteeing the accuracy of all pre-sale product information – including that of rival prov-iders – shown to borrowers during advice sessions.

The CML says the rules are unworkable because lenders cannot ensure that brokers have provided them with all the product information displayed to clients. It also questions whether lenders can effectively compare the mortgage deals of their competitors.

Communications manager Bernard Clarke says: “How are lenders supposed to check whether pre-sale illustration documents are correct and provided at the right time? How do they know if brokers have sent them all the documents shown to a borrower? Our response to the FSA will say these rules are absurd, unenforceable and unworkable.”

FSA press office manager Rob McIvor says: “The purpose of the consultation is to gather the views of the industry so we can come up with something that will work. We look forward to receiving the CML&#39s views.”

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Douglas Black

Born: Bicester, Oxfordshire,June 8, 1957 Lives: Pimlico, London with wife, no children. Age: 44. Education: Administration degree at University of Aston, Birmingham. Career: 1978-82: trainee chartered accountant at KPMG, 1982-83: tutor at Financial Training, 1983-85: group accountant at Standard Chart-ered, 1985-88: group financial director at SGL Communications, 1988-94: management consultant at Pricewaterhousecoopers, 1995-96: finance director […]

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