There is growing concern that many networks could be guilty of a regulatory breach unless they make sure any shortfalls in the number of ARs they have for Mortgage Day is communicated to the FSA.
So if a network originally told the FSA that they were looking for some 300 ARs and they are now looking at list closer to 100 ARs, that is something that has to be explained.
An anonymous source says: “People who have been approved could be in breach of the threshold conditions. The FSA needs to be more proactive and to warn them of any changes.”
There was also news of growing confusion amongst both ARs and networks as to whether minded to approve letters were actually necessary. A large network that has still yet to receive its MTA letter shocked its ARs when asked if it had received its MTA, when it replied, “We have got principal status – we don't need MTA's.
“Pay no attention to the trade press. They will write any old rubbish in order to raise a tidal wave so they can report on damage to the shore line.”
As one of the ARs commented to mortgage strategy, “If you are a principal as such, do you still need an MTA. I thought you did.”
The question over MTAs has been compounded further by the fact that the firm Manor Mortgages revealed this week that it had received official
authorisation from the FSA without first getting an MTA. While positive news for the firm, it does further muddy the waters as to what firms should expect.
As one incredulous industry pundit put it, “are you sure the MTA just hadn't been lost in the post?”