The group has announced that it will disclose all payments made to brokers and associated third parties including packagers within its KFIs. It has also confirmed that it will only guarantee KFIs generated via its own web-based systems. HBOS has said that it will attempt to support sourcing systems in providing compliant solutions but feels that verifying product data on every sourcing system in the UK is not feasible.
Commenting on the HBOS decision to disclose all payments on its KFIs Vic Jannels, managing director of packager AToM, said: “The HBOS group have in many respects a monopolistic position and it is disappointing that they appear not to have taken all aspects of the market into account in their current stance.”
He added: “In our view the need to mention all party’s income, except theirs will only serve to distort and confuse the market and most importantly the client.”
However Phil Jenks, head of mortgage strategy and development at HBOS, said: “The FSA's position on disclosure of material inducements is very clear. There should be no grey areas in the process between lender and borrower. It is down to the industry to drive this transparency forward in all sections of the market.”
He added: “The message is clear. Post ‘Mortgage Day’ the only HBOS KFI guaranteed to be accurate will be issued online from one of the HBOS brand websites. This is now the proven and preferred route for the vast majority of intermediaries and we have invested significantly to deliver an offering that is both compliant and delivers exactly what intermediaries need.”
