M&E Network is setting up a mortgage network to help advisers meet lender
standards under the new regulatory regime.
Independent Mortgage Advice hopes to sign up 1,000 intermediaries by the
end of the first year in addition to the 1,000 IFAs which are already M&E
and Interdependence members.
The network will provide the compliance training lenders are likely to
demand from IFAs once the FSA starts regulating mortgages.
Using software from The Exchange, intermediaries will have access to
product information, audit details, reasons why letters and guidance
through the new regime.
M&E says it has most of the major lenders on board to support the
initiative and they will be offering higher procuration fees to compliant
An M&E spokesman concedes there will be a cost to intermediaries but this
will be substantially less than if they were to buy the software
Chairman Barry Kayes told delegates at the network's conference in
Birmingham last week that there would be significantly fewer than the
40,000 intermediaries who operate in the mortgage sector once the FSA
starts regulating. He hopes the network will help “sort the wheat from the
Kayes says: “The main thrust of this venture will be external. IFAs can
have all their needs met much more cost-effectively than they are now and
we can help them do that.”
Nationwide Building Society spokesman Peter Brown says: “Any system that
ensures IFAs are compliant has to be welcomed in the financial services
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