The Intermediary Mortgage Lenders Association has called for more clarity on the issues of affordability and appropriateness in its response to the Financial Services Authority’s Mortgage Market Review.
The specialist trade body states it is broadly supportive of the FSA’s proposals and believes the MMR addresses issues that are important for the health of the mortgage market.
Peter Williams, executive director of IMLA, says: “The areas where we believe there is most scope for discussion are around ensuring clarity as to what precisely is expected by the relevant parties so as to avoid confusion and uncertainty.
“We need to see and discuss a fully integrated set of policy and rules drawn from across the different CPs before this is fully finalised.”
Williams says there is the potential to further refine proposals on issues such as single sales standard, affordability and appropriateness, rolling up fees and service disclosure, and IMLA would be happy to work with the FSA in making these improvements.
“Our biggest concerns are around affordability, appropriateness and best interests. These issues stand at the heart of the intermediary mortgage market and it is essential the FSA works with the industry to secure effective outcomes.
“We need to ensure policy and rules are aligned and there is real clarity as to outcomes sought, roles taken and processes used.”