The Professional Mortgage Network says that many would be ARs are making a serious mistake by committing to just one network says PMN.
PMN believes that as many as 20 networks won't be in a position to start trading post Mortgage Day.
Dale Knight, managing director of PMN managing, says: “The Financial Services Authority will impose such draconian measures on them because their systems and infrastructures don't meet the regulators benchmark criteria that it will be impossible for them to start trading.
“That's obviously bad news for the networks concerned. It's also going to be extremely bad news for any AR who has tied their colours to a
network that doesn't pass the FSA test. These ARs are effectively going to be out of business for a considerable period unless they have a contingency plan.
“My recommendation is that anyone seeking AR status through a network should submit applications to at least three networks including one of
the big names. At least then the ARs back will be covered if their preferred choice doesn't make the grade. I have no doubts that failing to
have a contingency will cost an AR dear in the final analysis.”
“PMN believes many networks will fail to meet strict FSA requirements at the point when the regulator makes a physical visit to the premises of the network. This unsolicited interrogation is known as an arrow visit. PMN has established that all new mortgage networks will be subjected to an arrow visit.”