Cummings obviously possesses those rose-coloured spectacles that allow him the misconception that all is okay in the world of mortgage advice. Given his position, this is at least naïve. The Financial Services Authority’s (FSA) report into the non-conforming market actually appears to be too weak as opposed to too negative.
His quote that ‘the research found no significant evidence of non-conforming mortgages being sold incorrectly’ is surely contradicted by the findings that a third of files had inadequate assessment of affordability, almost half had inadequate assessment of suitability, more than half of customers were self-certified with no evidence as to why this was necessary, and significant numbers involved remortgages which included early repayment charges. No significant evidence? Does the regulator need the murder weapon, motive and to be told that it was Colonel Mustard in the drawing room to see there’s something going wrong in this sector?
There are clients that need these types of products but they form the most vulnerable and occasionally desperate section of mortgage applicants and therefore need the most protection from the FSA in collaboration with the Association of Mortgage Intermediaries (AMI). While AMI has a role to play in protecting firms from over-intrusive or unnecessary involvement and interference from the FSA, it should concentrate on that remit and not attempt to disrupt and belittle its attempts to get rid of the elements who – let’s not beat round the bush here – are looking to rip people off.
Mike Cole
Moore & York Financial Services Ltd
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