Premier Mortgage Management managing director Mark Mountney is set to drastically reduce its panel of lenders due to worries over their key features illustrations.
Premier has been assessing its panel of two dozen lenders and their capability to produce compliant KFIs. Mountney says so far only Birmingham Midshires is ready.
He says any lender not proven to be fully prepared will not receive any applications from Premier from next week.
The main issues the mortgage and loan broker firm is encountering with KFIs relate to transparency of commission disclosure, clarity of fee charges and refunds. It is also experiencing technical failures on several lender websites.
Mountney also expresses concerns that the critical mass for many of the mortgage networks simply cannot be met and as a consequence there will be a number of withdrawals in the market or mergers and acquisitions.
The FSA has confirmed that 3,996 applications have been placed for direct authorisation and 2,917 for variation of permission. Estimating that 10,500 firms renewed with the Mortgage Code Compliance Board in April 2004, Mountney points to a shortfall of around 3,500 firms without a clear future business model.
Mountney says: “The situation is becoming more frantic with mortgage regulation only three weeks away.”
BM Solutions press officer Matt Grayson says: “We do not believe there is a widespread problem in the industry but those who have left things too late may struggle come M-Day.”