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Pricing is a key issue for networks

Mortgage Intelligence managing director Sally Laker

“There has been much debate about how many appointed representatives a network will need to survive after regulation. This is a key issue for those networks that have underpriced their service either intentionally to attract members or because they simply got their sums wrong. For those networks that are providing a comprehensive, high-quality service and have done their homework properly, this is not an issue.”

Hamptons International Mortgages managing director Kevin Duffy “My employer has sufficient resources to be able to inform and cultivate its client bank on a regular basis and while smaller practitioners are willing to do likewise, the costs of, say, quarterly bulletins can be prohibitive. So in attempting to curb cold-calling, the FSA has undoubtedly thrown the baby out with the bath water. How long before an uncontacted existing borrower sues his broker for not getting in touch at product expiry? Every broker I speak to feels passionate about this and as an industry we need to take the fight back to the FSA on this one.”

With the handover to the new mortgage regime just days away, our panel of experts share their views on regulation. From the tasks that may have been left too late to views on the way the market will develop, our experts say what they think companies should be doing Portman Group intermediary sales associate director Paul Howard Less than two weeks to go and the last frenetic preparations are in full swing. It is the time when new systems and processes are being unveiled. These developments have been in the making for a long time but it is only now that the practitioners in the business finally get to see the finished article being switched on. There is much finger-crossing going on across the industry. Last week, we finished testing our online KFI system for intermediaries. I have been allowed to play with it and was immensely relieved to see that it works – phew, what a relief. Having said that, we do not yet know what proportion of mortgage advisers will choose to obtain their KFI&#39s direct from the len-der or via a sourcing system or from both. This is another question which will not be answered until after M-Day. This week, our boffins unveil more new regulation systems. It is a nerve-wracking time for everyone.”

Bankhall group sales director Shaun Godfrey

“When brokers realise their network is not all it is cracked up to be, the first thing they should do is study their contract. They must assess the implications of switching networks. How much notice does the network require? Will the network withhold commission during this period? Has the network built in clawback liability?” AMI director Chris Cummings

“A quick question for those firms which are planning to be directly authorised by the FSA – have you applied for general insurance permissions too? It appears that quite a few mortgage intermediaries have only opted for mortgage authorisation. This can mean one of two things – they are planning to become only introducers for GI or there was an oversight when making the application. It is best to check.”

Mortgage Brain chief executive Mark Lofthouse

“Many introducers are leaving it late to upgrade their technology to the latest compliance systems. This becomes more of an issue depending upon the number of software packages that an introducer uses. Rather than leave this to the very last minute, our advice is to upgrade now and be prepared in advance of M-Day.”

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