Mortgage lenders will find it impossible to police pre-sale disclosure by intermediaries using different quotation systems under forthcoming FSA regulations, according to electronic platform provider Mortgage Brain.
The warning came at last week's Property Business Show at Olympia in London, where Mortgage Brain director Mike Green said the new FSA rules would result in lenders restricting the number of electronic quotation systems used to one or two.
The new regulations will require lenders to check on documentation provided to borrowers by intermediaries.
Green said lenders would not be able to control product documents given at point of sale if intermediaries were using up to 12 different systems, such as Mortgage 2000 and Assureweb.
Green believes medium-sized lenders are most likely to be hit by the regulations as they cannot afford the cost of monitoring 40,000 intermediaries, each selling up to 6,000 products, using multiple systems for quotes.
He asked: “How will it be possible for a lender to control the activities of an intermediary using 10 or more different quotation services? The industry cannot allow this to happen – the amount of development required will be horrendous.”
He also claimed Mortgage Brain will pip rivals such as IFonline to be the first mortgage trading platform to sign up the major lenders still deciding which system to commit to. He believes the company is in “an extremely strong position”.