From Stephen Yates
My, my! What are we doing? The mortgage industry appears to have gone into self-destruct mode.
We have the Financial Services Authority drafting consultation forests and plotting the demise of the small broker. This much we have come to expect. But now we learn of three advisers being suspended over 'self-create my income' mortgages and the accusation being spread that this is a widespread practise in the industry.
I understood that the Association of Mortgage Intermediaries was instrumental in securing an FSA U-turn on self-cert mortgages for the employed. Then, a matter of weeks later, the industry pushes a big self-destruct button which will most probably see the death of self-cert as we know it.
On the one hand we have the government putting the industry under severe pressure to create more competitive products (long-term fixed rate mortgages etc) and the FSA stifling competitive products with regulation we say uses a sledgehammer to crack a nut. On the other hand, we prove the FSA's original opinion correct.
How can we survive with scandals like these? Here's an idea. Cutting through the maze of problems, consultations and inadequacies, why don't we turn statutory regulation on it's head?
Let's transform the move from the MCCB/GISC to the FSA into a brilliant opportunity to show the average man on the street that we are not commission-hungry salesmen concerned only with lining our pockets, but are instead professionals. Whether salesmen or women, advisers, consultants, ARs, DRs, IMAs, IFAs or just humble brokers, we put the needs of our clients first by providing proper, sound and bespoke advice.
Dissociating ourselves from single premium ASU and 'self-create my income' mortgages, let's get our act together before we are all put out of business. Now, if I just add an extra zero my client will be able to