FSA's requirements on proof of income are stifling recovery
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I pay a monthly charge and 10% of my earned income to my network. For this, it reviews my compliance procedures, including proof of income on my files on an ad hoc basis.
If I carry out a mortgage review and subsequently submit an application on behalf of a client it is my responsibility to ensure I have sufficient proof of income on file and have checked affordability for my client, not only in line with my network’s guidelines but also bearing the lender’s criteria and policies in mind.
When reviewing applications the lender makes the decision whether or not it requires sight of those documents.
But given the sophisticated credit checking systems and Big Brother-style information held on all of us nowadays, this is often unnecessary because lenders can tell from a client’s credit file how well they are servicing their existing debt.
Why on earth does the Financial Services Authority feel this is unacceptable?
If I submit an application and am lucky enough for it to be treated as fast-track the lender still has the right to request income verification documents at any stage, and it’s my responsibility to supply them or risk having my right to fast-track withdrawn.
Why does the FSA feel the need to withdraw this facility? It’s the one thing that is keeping the market moving, reducing the need for long document processing times and cutting the amount of sensitive data being sent on emails to faceless departments.
I fear the situation will only get worse in the run-up to 2012 as individuals at the FSA try to put their names in the spotlight in an effort to transfer their jobs to the Bank of England department being set up to monitor and punish the mortgage market.
I say let’s get rid of them all and start again with professionals who have worked in the industry and know what they’re talking about.
MARK OLIVER
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