Brokers are threatening to boycott lenders who fail to meet mortgage regulation requirements.
Lenders who are not prepared for Mortgage Day will be dumped by 75% of brokers and may not be used again, research from Marlborough Stirling reveals. Nearly half, 47%, of brokers say they are concerned about being unable to deal with lenders who opt to close their books while they re- engineer systems and processes to become FSA-compliant.
And over two thirds of intermediaries, 67%, say they are worried about the level of service that these lenders might provide when they re-open. The research, which was carried out among 507 intermediaries, demonstrates further the long-term ramifications of not being prepared for regulation.
Phil Heaton-Jones, director of product development at Marlborough Stirling, says: “Lenders failing to get their houses in order or simply adopting short-term solutions to regulation are in danger of permanently alienating brokers who have indicated that they will regard this type of approach with grave concern.
“Lenders must ensure they are in a position to provide excellent levels of service after Mortgage Day, underpinned by sound business processes and modern technology. Otherwise intermediaries will vote with their feet.”
Robin Gordon-Walker, spokesman at the FSA, says: “Lenders will be preparing themselves for regulation. It is up to the brokers if they want to boycott them but essentially they will not be able to do any business.”