Speaking the mortgage industry conference and exhibition yesterday in London, organised by the Council of Mortgage Lenders Smith says the paper may help to level the playing field between intermediaries and direct business.
He says: “What seems clear is that the combined costs of Individual Registration, full mortgage qualifications for all selling staff and the need to validate affordability and suitability in all sales- both advised and non advised is likely to increase the costs of doing business direct for lenders.
“Any imbalance between the costs of originating business via intermediaries or branches will change and lenders may find it even more evident that intermediary distribution is cost effective, flexible and capable of growth.”
Smith went on to say that there would need to be a lot of consideration given to the proposals contained in the consultation paper to alter the responsibilities of intermediaries for assessing affordability.
He says advisers will be keen to ensure there role is not diminished.