Networks exclude Bank of China products for ARs
Share
Some networks are forbidding the sale of Bank of China (UK)’s products because of the way its Key Facts Illustrations are generated.
Brokers can only access Bank of China (UK)’s KFIs via Mortgage Brain and Trigold due to the lender’s limited resources.
But as sourcing systems do not accept liability for the accuracy of KFIs some networks have ruled that the documents can’t be used.
A spokesman for Bank of China (UK) says that as its KFIs are not lender-generated this could cause problems with some networks, as they insist that brokers obtain KFIs directly from lenders.
He says: “As a result of this we envisage some networks forbidding the sale of our products by their appointed representatives.”
Brokers with one major network received an email earlier this month announcing that Bank of China (UK) had been removed from its panel because it cannot produce lender-verified KFIs.
But the lender says it has verified the KFIs listed on Mortgage Brain and Trigold, that it conducts regular internal accuracy checks and that it provides sourcing systems with sample illustrations.
Bank of China (UK)’s spokesman adds: “We continue to accept busi-ness from our four valued distri-butors, and Mortgage Brain and Trigold are invaluable to us. Due to their compliance policies some networks may not be able to offer our deals but that is their decision.”
The Financial Services Authority’s Mortgage Conduct of Business rules outline the character- istics of compliant KFIs.
These include the prominent use of the Keyfacts logo, a clear separation of sections and payable am- ounts being plainly stated. Font sizes should also be consistent and the document should be laid out clearly.
The FSA also says that costs such as early repayment charges and higher lending charges should only be described as such.
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
