Speaking at the Intermediary Mortgage Lenders Associations annual dinner last night, chairman Tim Dawson called on the Financial Services Authority to review the Mortgage Conduct of Business.
Dawson says: “The FSA with the help of the industry should take the opportunity in 2006 to undertake a review into the workings of MCOB, looking at ways it can be simplified and improve the quality of decisions that are being made and reduce costs.”
He calls on the FSA to work with the industry to make sure this causes minimum disruption. The review he says would also be compatible with what the governments objectives are.
Dawson also refers to research that was undertaken by IMLA members which shows 86% of members think that the Key Facts Illustration did not help or made no difference to the approach taken by the mortgage customer, while over 70% feel it brought no benefits at all to their customers.
He adds: “It will be difficult to see how it will improve unless serious changes are made. It is estimated that regulation cost the industry 200m to implement, and between 75 to 150m to implement MCOB.”