Better broker supervision could protect consumers, says Coogan
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Michael Coogan, director-general of the Council of Mortgage Lenders, has said that better supervision of mortgage brokers would remove many of the root causes of consumer detriment.
Speaking at the CML’s Mortgage Market Review conference last week, he told attendees that brokers’ behaviour had undoubtedly worsened the impact of the credit crunch on a minority of consumers who borrowed irrationally. Commenting on his quote in May that some brokers were “acting more like salesmen”, he says: “This was not a popular thing to say but sometimes the truth hurts. Some were more interested in cash flow than their clients’ interests.
“If the FSA supervises brokers better many of the root causes of consumer detriment will be removed. So we support the regulator’s measures to tighten up fraud prevention through the Information From Lenders scheme and the extension of the approved persons regime.”
He also warned that Tory plans to replace the FSA if they come to power could be an unwelcome distraction as the market attempts to get back on its feet.
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Readers' comments (1)
Michael Norwood | 6 Jan 2010 2:22 pm
Interesting comment seeing as 90% of non advised sales (comprising 33% of the entire market) have been placed directly through his members with virtally no checks on affordability,income,or suitability. I wonder what % of these customers have suffered detriment?
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