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Mortgage packagers want their role clarified in the run-up to regulation

Mortgage packagers are calling on the Treasury and FSA to clarify their future role as the countdown to full mortgage regulation gathers pace.

Packagers speaking at packager regulation forums held by Southern Pacific Mortgage have voiced concerns over how far they can be regarded as giving information or advice.

They say they need urgent clarification of these terms so they can plan for the statutory regulatory regime which is due to come into being in 2004.

As the term “packager” covers a wide range of businesses from sole traders who package their own applications to major organisations, they argue that the indications that have been given so far leave the various types of business unable to see where they will stand.

SPML director of credit Stuart Aitken says: “The role of packagers under the proposed regulatory framework, as either agents, arrangers, advisers or just providers of mortgage information, is far from clear.

“Whichever way that the regulated/non-regulated divide finally falls, it is bound to result in major shifts in mortgage market distribution, so packagers, lenders and advisers all want to be as prepared as they can.”

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