The much anticipated mortgage packager code is to be shown to the Financial Services Authority for feedback, once it has been given the thumbs up by packagers.
Although packagers are not regulated by the FSA, both it and the Intermediary Mortgage Lenders Association will we be asked to highlight any points in the code that they do not agree with.
The Association of Mortgage Intermediaries set up the packager task force in July 2007 to work on producing the packager code, which is set to be introduced in the next few months.
Robert Sinclair, director at the Association of Finance Brokers is in charge of heading up the task force and says it is vital that the boundaries between what brokers, packagers and lenders are responsible for are clearly defined.
He says: “Towards the end of month I am hoping to be able to share the code with some other bodies.
“Part of the code is to get approval from people like IMLA, so we will take it to them for comment, to see if they are happy with it for lenders.
“We would hope that IMLA would endorse the code, so that packagers signing up to it have the confidence that lenders have endorsed it.
“We would also like to take it to the FSA. We are setting the boundary, so that we can say this is what brokers are responsible for and this is what lenders are responsible for, and this is what packagers are responsible for in the middle.
“The FSA is unlikely to say that they agree with it, but what they could say is that they don’t disagree with it.”
Sinclair says that if there was anything in the code that the FSA did not agree with he would then go back to his members and discuss whether they needed to change it.
Sinclair says that it is also possible the code may be delayed if packgers feel that current market conditions need to improve before they can concentrate on lanching it.