The latest MMR paper makes the stipulation that anyone involved in the sale of a mortgage needs to have a Level 3 qualification.
Requiring all sellers to hold a qualification seems like the most logical thing in the world. But it makes you wonder why it was not needed in the first place.
Pointing out fees and terms to clients is a joke as many often claim to have been unaware of them despite the Initial Disclosure Document, Key Facts Illustration, suitability letter and formal offer.
Surely there should be some record of disclosure but the FSA has decided we don’t need it.
I get clients to sign a copy of the KFI. Although this does not prove beyond doubt that they understood it, it does at least show they have taken the time to read it.
This, together with all other documentation, seems to provide a pretty compelling argument for having explained to clients the terms of business.
Will lenders now be happy to train and pay for staff to be qualified? I think there may be less appetite for lenders to rely on direct deals leading to broker channels increasing.
Hopefully this will mean dual pricing is removed or at least reduce the gap between the two.
If the difference in rates were negligible clients would have to make informed choices.
Either they would pay the minimal difference to not deal with the lender and have the broker do the work, or take the cheap option of dealing with the application themselves to save a few quid per month.
This paper could have been a disaster for brokers but there are positives to be taken from it.
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