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Firms working full pelt as big day approaches

“With many mortgage intermediaries not authorised by &#39M-Day, they may be seeking a route to market, for example, using a “friend&#39s” authorisation number for an int-erim period.

The FSA is aware of such practice and is warning both authorised and unauthorised that this is an illegal act resulting in both parties being unable to trade in the future. Furthermore, the lender accepting the business will have no legal right over the borrower should he default.”

Premier Mortgage Services managing director John Malone

“Prove it! So, you&#39re a dir-ectly authorised firm. You made it through M-Day, having ticked all the right boxes on the FSA&#39s application form especially those annoying training and competency sections.

“Under the MCCB, to prove you were competent, you must have held a mortgage qualification. Fine but the FSA wants ongoing evidence of competence. More to the point, if there is a knock at the door on Monday November 1, just how do you prove you are now competent to advice on mortgages?

“It is no good pointing to a CeMap qualification that was based on the mortgage code (which is no longer around) and it only shows that you passed an exam. Competence goes much deeper. What do you have in place to prove it?” AMI director Chris Cummings

With less than a month to go before the start of mortgage regulation, we ask some of key figures in the industry to discuss the main issues the industry face.

As the clock ticks down to M-Day, intermediaries, packagers and lenders are all doing their best to make sure business can run on November 1.

With the industry entering the uncharted territory of FSA control, firms are working full pelt to make sure they make the most of the crucial first weeks of regulation.

How the industry will take shape nobody can yet be sure. These are some of the views of the people shaping the future mortgage market.

“We have recently urged consumers to check that their intermediary is on course to get authorised in time.

“This does not reflect any reason to think that there are large numbers who will not be authorised but is simply designed to alert consumers to the potential for delays if their application cannot be processed bec-ause their intermediary cannot undertake regulated mortgage activities.”

CML head of external affairs Sue Anderson


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