Make a stand: Sign our petition to save brokers
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Mortgage Strategy is fighting for the industry by launching a petition to ensure the survival of mortgage brokers, following proposals in the Financial Services Authority’s res-ponsible lending paper.
Last week the regulator released the latest instalment of its Mortgage Market Review.
It places responsibility for affordability in the hands of lenders, which has led to fears that the regulator is overlooking the role brokers play in the market.
Mortgage Strategy is calling on the broker community to make its voice heard and support our online petition. We aim to collect as many signatures as possible by August 31.
Once the signatures are collected we will deliver the petition to the Financial Services Authority and the Treasury.
The petition will go live on Mortgage Strategy’s website on Tuesday morning.
It calls on the regulator and the government to ensure the survival of brokers by adapting proposals in the MMR so that they continue to have a significant role in the process of offering consumers mortgage advice.
All but one lender surveyed in an FSA-commissioned report by consultancy Oxera say they will reduce the number of intermediaries they work with if the proposals are implemented.
The average lender expects to cut broker distribution by 29%, with a maximum reduction of 60%.
Oxera’s report says that the relationships between lenders and intermediaries are likely to change as a result of the regulator’s proposed rule changes.
It states: “Although this would reduce to some extent the choice of consumers using an intermediary, each broker may still have access to a sufficient number of mortgage lenders.
“Therefore, the reduction in the number of relationships between lenders and intermediaries may not affect the degree of competition between lenders.”
Robert Sinclair, director of the Association of Mortgage Intermediaries, says: “In organ-ising this industrywide petition Mortgage Strategy is providing an opportunity for both intermediaries and lenders to make clear their objections to these proposals.
“AMI will be lobbying to ensure that the plans announced by the FSA do not lead to a further reduction in broker numbers or a decline in the availability of whole-of-market advice for consumers.”
The FSA will launch its consultation paper on distribution and the role of brokers later in the year.
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Readers' comments (7)
Ken Wilson | 19 Jul 2010 6:08 pm
It's all very well to invite signatures on a petition (which I will gladly do) but more importantly we should all be sending letters to our elected representatives - the Member of Parliament.
All MP's have an email address, and I assume that all Mortgage Advisers have email access, so assuming that there are about 30,000 plus mortgage advisers and about 660 MP's here's a chance to let them start earning their salaries and dare I say it their expenses.
Generally speaking you need to send it to them at the E-mail address: firstname.surname.mp@parliament.uk
So lets get busy because I did to my MP and I got a response back
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Anonymous | 19 Jul 2010 7:52 pm
FSA are just annoying- such man made business preventon unit
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marty stroiman | 19 Jul 2010 11:49 pm
This past April we celebrated our 25th anniversary as a Mortgage Broker and we have never originated sub-prime loans. We were a pioneer in this industry 25 years ago and have seen constant changes and improvements to our industry until now. Mortgage Brokers are basically travel agents for the loan origination business. We pay attention to detail and offer clients personal customer service usually at a lower cost to the consumer than a large bank. It is an injustice to the American homeowner to take away our competitiveness. Our company would not average 3.2 referrals for every loan we closed last year if we were overcharging home buyers or committing fraud.
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Anonymous | 20 Jul 2010 7:56 am
All in support
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S | 20 Jul 2010 9:03 am
This is very concerning, customers simply will not get 'good advice' direct from lenders, are the FSA really suggesting people deal just with call centres or that they find someway to take time off work mon-fri 9.30-4.30 to go 'into a branch' and see some 19 year old 'adviser' who's just qualified. Banks will not pay these staff enough or offer enough incentive for them to stay in the role so there will be no continued service, these advisers will never 'know their clients'.
I have survived this turbulent time from having 10 years worth of clients who have always been looked after, and received excellent advice and service and who continue to refer all their friends, family and work colleagues to me, this has surely got to prove that having an adviser is a good thing.
interestingly i met a chap last week who couldn't understand why is 43 year term mortgage wasn't coming down faster, this had been sold direct by Nationwide over the phone and because, when asked how long a mortgage term he would like, the client responded 'I don;t know the longest there is i guess' HOW IS THIS ADVICE?
He's now redeuced his term to 23 years which is more than comfortable within affordability and will hopefully make up for the extra interest he's paid for the last 2 years.
I really cannot beleive that lenders feel they would be better to loose our experience, we are ultimately their strongest sales force, badly trained call centre staff, and one chap in branch are not going to generate them the same level of business we can put to them, simple as that.
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david walden | 20 Jul 2010 6:30 pm
There has been a senseless and misguided attempt by the legislature to wipe out the broker industry. This must stop....NOW!
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Anonymous | 21 Jul 2010 4:33 am
The only people left in the business are hard working individuals who have a passion to help individuals achieve the American Dream" and I am Damn proud to be in the Mortgage Business!!!
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