MMR spend tops £2.7m as industry patience wanes
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The Financial Services Authority has spent over £2.7m so far on the Mortgage Market Review, Mortgage Strategy can reveal.
A Freedom of Information request reveals that since the regulator started working on the MMR two and a half years ago, it has spent £2.55m on staff costs and £213,000 on consultants and agencies, equating to over £2.7m.
The figure excludes additional costs to the industry for implementing the proposals which could also be in the millions.
A spokeswoman for the FSA says: “In addition to a dedicated core team, the review has drawn on expertise from around 40 staff across the FSA. We have also engaged with a wide range of stakeholders to seek their views on our proposals.
“We have developed and published a number of policy papers, run industry events across the country and engaged in numerous discussions with trade bodies, firms, consumer groups and government departments.”
She adds that the staff costs for the MMR have been met from existing budgets.
But Robert Sinclair, director of the Association of Mortgage Intermediaries, says the industry has the right to challenge whether it has been money well spent.
He says: “Any project that runs for a number of years and has a seven-figure budget in a commercial place will be subject to scrutiny and independent review. As the people funding the MMR, the industry has a right to challenge whether it has been money well spent.”
Speaking at the Mortgage Business Expo last week, Sheila Nicoll, director of conduct policy at the FSA, would not confirm whether the MMR would be out by the end of the year.
Sinclair adds: “The industry is now screaming for the publication of the MMR as the continued uncertainty means customers are not able to get the mortgages they deserve.”
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