The Association of Mortgage Intermediaries has rubbished claims made by the Association for Direct Mortgage Authorisation that applying for FSA authorisation is a quick process.
ADMA says the time taken to complete an application is no more than 90 minutes, based on the experiences of brokers who have attended its workshops.
But AMI director Chris Cummings says: “This is a foolish thing to say. The AMI helpline has been red-hot with members needing advice on completing the form. It takes a day or two just to prepare to complete it. There is too much myth, legend and misinformation in the industry at the moment and it needs clarifying.”
Mortgages Direct has also challenged ADMA's remarks and says the process can take hundreds of hours.
Peter Gladdy, compliance director at Mortgages Direct, says: “Our application runs to some 450 pages, and has taken us hundreds of hours with the involvement of the entire management team and some considerable redrafting, even at the 11th hour.
“ADMA, in making such a statement, is making a mockery of the whole process and is doing neither itself nor the industry any favours.”
Gladdy adds: “Whilst it may be factually possible to complete the basic HSF forms one and two in such a short space of time, to do so without having thought about the requirements of satisfying the FSA's threshold conditions could prove disastrous.”