View more on these topics

IDDs and affordability is a worry, says FSA

The Financial Services Authority says it still has concerns about Initial Disclosure Documents, with one out of two containing five or more errors.

Speaking at the Mortgage Business Expo, Clive Briault, managing director of retail markets at the FSA, says although the regulator has been encouraged by the fact that consumers find Key Facts Illustration and IDDs both useful and accessible, it’s still concerned about the number of errors contained in IDDs.

He says: We have continued to find cases where disclosure documents are not inline. One out of two IDDs contain five or more errors. This is a concern. We are trying to deliver more principals based regulation and in some areas we need more rules and guidance with disclosure in particular.

Briault also says the FSA has identified that problem areas include affordability, retirement, interest-only mortgages and competence and training.

It has found that in some cases affordability is not being discussed with the customer at all.

He says: We are worried about affordability but it is too early to assess how big the problem is. Both advisors and lenders have responsibility to affordability.

Recommended

CML reveals remortgaging hits lowest level for five years

New data published by the Council of Mortgage Lenders shows that levels of remortgaging have reached their lowest figure for five years.Figures for September show that remortgaging accounted for 30% of the market by value, which is the lowest figure since August 2001. Figures for the third quarter of this year reflect this trend, with […]

MPLC completes securitisation

Last week, Mortgages PLC completed a securitisation of £650m of mortgage assets. The bonds have been issued via its parent Merrill Lynch.

IT should be used to help customers

Technology can be a boon to brokers and clients as it speeds the mortgage process, but some lenders are using it to mask flaws in their propositions, says Richard Coulson

Image change to build business

The Finance Planning Group has adopted a fresh image aimed at growing business across all areas of the group. The new corporate identity combined with an integrated marketing plan is intended to provide a platform to raise awareness and build a proposition to attract new customers.

Newsletter

News and expert analysis straight to your inbox

Sign up