Brokers in breach of new mortgage code rules will be suspended from trading with registered firms with immediate effect, warns the Mortgage Code Comp-l
New MCCB registration rules, which took effect last month, could lead to
non-compliant brokers risking immediate suspension from the mortgage code,
meaning they will be unable to sell the mortgages of most major lenders.
Previously, a firm could only be suspended after a full disciplinary review.
Brokers with lapsed PI insurance could have their registration to the code
revoked, as could those caught providing advice without a professional
qua-lification, such as Cemap, after next December.
Although the regulatory information has been sent to brokers, the length
of the updated documentation has led to fears that some brokers may not be
fully aware of the rule changes. An MCCB spokesman says: “Firms not
familiar with the new rules are advised to check the documentation sent to
them when they renewed their registration.”
Mortgageforce managing director Rob Clifford says: “Registering with the
code means brokers are committed to the registration rules so it is crucial
that they fully understand and adapt to them.”