Leader: Join fight to save our sector
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The Financial Services Authority’s responsible lending consultation document published last week was dubbed the ’lender paper’ prior to its release as it was believed to be aimed more at lenders than brokers. It was anything but.
While many of the proposals make sense - such as the ban on self-cert and stricter checks on affordability - they don’t make easy reading for lenders or brokers.
Some have downplayed the impact the proposals will have on mortgage brokers, pointing out that lenders already take responsibility for affordability. And it’s true that brokers will still have a valuable role to play in providing advice, but they’ll have their work cut out arguing the case for proc fees if the proposals are implemented as they stand.
The FSA doesn’t unveil its plans for distribution and brokers until later in the year but if the latest paper is anything to go by intermediaries shouldn’t hold their breath for good news. In the past week a number of you have voiced your concerns on Mortgage Strategy’s website so we’ve decided to take your concerns directly to the FSA and the Treasury with the launch of a petition entitled Fighting For Our Industry.
We want to collect as many signatures as possible to make the powers that be aware of the strong feelings that exist towards these proposals, and highlight the need for the FSA to consider how they will affect brokers.
The Association of Mortgage Intermediaries plays a vital role in representing brokers and it’s also seeking feedback from you to take to the FSA. And don’t forget, you can submit your responses directly to the FSA too. If everyone makes their voice heard, together we can fight for our industry.
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Readers' comments (2)
Wetherbys Estate Agents - St Albans | 20 Jul 2010 8:53 am
The FSA have made a choice to dictate how a bank should and should not work. This is wrong. It was the banks that lost their money due to irresponsible lending. You would assume, the banks will now naturally be more cautious, however if they feel there is a market for self certification or fast track, I feel it is them that should have the final say and NOT the FSA. Generally banks have been going a long time. How long has the FSA been going within the banking sector? The FSAs role should be to provide guidelines not dictatorship. The double dip recession that everyone is talking about will be caused this time - by the FSA. Another big gripe is – as we all know, due to the FSA a lot of companies have now left the industry. So due to the lack of companies and individuals left, when the FSA issue a fine (and now days these fine seem to be ridiculous due to lack of people still operating), why is it all the money should go to them. Also if they are classed as public sector, why do they get paid so much? To be a compliance officer at the FSA, you don’t have to do seven years studying like a doctor. No, you just have to be a failed mortgage broker and you get paid the same as a doctor! My business partner knows about 10 personnel at the FSA and even they think most of these ideas that the FSA introduce are just ridiculous and overall is killing the market. Although if asked, none would admit it!! I am one of the people forced into leaving the industry after 18 years in the industry. They actually done me a favour as I now own an estate agency and am building up on my no initial out lays estate agency franchises. Lets hope they never get involved with estate agency work! Good luck to anyone reading this. Josh
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simon murray | 25 Jul 2010 1:10 pm
Brokers are seemingly being targeted with the usual lack of focus by the FSA. The fact is that the majority do a good job and act in the clients interests unlike the banks who have other vested interests to meet.By offering a choice of fee or commission from the lender, surely the consumer is being offered choice and clarity. On affordability any broker worth his salt will do the checks any lender would do before submitting a case so actually people are checked out twice. The FSA as ever are oblivious to this
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