Gemma Harle Blog

The FSA have publicly committed to continue with the delivery of the MMR programme, and so for the foreseeable at least, it is very much "business as usual". The broad themes of responsible lending, arrears management and approved persons are well documented. But many in the mortgage broking community are still unaware of what they should be doing in order to prepare for the new world.

This is understandable. The broking community is in large part reliant upon the actions and responses of lenders before it can modify its own business. However since the vast majority of the lending community have yet to firm up their intentions, understanding their intentions and likely demands remains difficult. There is an impasse. Brokers need information and lenders cannot deliver it.

But as we have seen deadlines are unlikely to shift dramatically. The publication of the policy statement on arrears and approved persons in June 2010, illustrated that  the FSA will act quickly in the areas that it sees as highest risk in the mortgage market.

Better communication between lenders and brokers on MMR is crucial. As the FSA clarifies regulatory requirements, it is as imperative as ever that the industry engages in thorough communication to ensure that its response is joined up.