The Council of Mortgage Lenders is warning members to beware of being hoodwinked by electronic platform providers claiming their technology is endorsed by the FSA and compliant with statutory regulation.
In a circular sent out last week, the CML urges lenders to disregard any impression they may have given that the FSA favours one system over another.
The circular says lenders should be aware that it rem-ains the case that they will be responsible for ensuring information given to borrowers is accurate and issued at the correct time, regardless of what they may have been told.
It says: “We are aware that some lenders may have received the impression, from service providers, that these companies have obtained some form of FSA approval for their systems.
“The FSA has asked us to stress this is not the case. There will be no question of the FSA approving individual companies or systems.”
IFonline marketing manager Richard Hurst says: “We have been in talks and discussions with the FSA since we started building the compliance system lenders and brokers will need to meet their requirements.”
Mortgage Brain sales director Mike Green says: “No one can claim they are compliant with FSA rules because they are not finalised. It would be silly and stupid of anyone to say they are end-orsed by the FSA because it never would do so.”