Seven out of 10 mortgage advisers believe the MCCB is not doing enough to clamp down on unqualified brokers, a straw poll conducted by Mortgage Strategy reveals.
Some 51,000 individuals were qualified to give mortgage advice after the MCCB's December 2002 deadline. But many of those who invested their time and money in preparing themselves appropriately are unimpressed at leniency shown to those who did not.
Qualified brokers are incensed by allegations that some brokers and packagers are allowing unqualified brokers to file their front sheets on submitted mortgage applications, and say that those found guilty should be closed down for breach of the Code. Some 70% of brokers polled said they felt that the MCCB should be more active in cracking down on unqualified brokers.
Jim White, managing director of Jim White's Mortgage Solutions, says: “If there are government regulations and standards established, it is up to the government and MCCB to ensure that only those qualified are giving advice. We have invested heavily in making sure that our staff are CeMAP qualified and those who have not made the effort should not be let off.”
Rob Clifford, managing director of mortgageforce, adds: “One of the most serious threats to consumer protection is from unqualified brokers thinking they can get away with giving unqualified advice. It's not just the breach of MCCB rules, the fact is that they have probably also invalidated their PI insurance by doing this.”