AMI to focus on equity release and HIPs
Chris Cummings, director-general of AMI, told Mortgage Introducer it identifies equity release as one of the biggest issues for the industry at present. He said the trade body will be helping brokers and the industry move forward to get to the level of understanding and quality of advice that is needed. He said: “We will be doing lots of work in this area over the next few weeks. The fear is if the FSA does a mystery shopping exercise on equity release, what will this show up?”
Cummings also revealed AMI will be looking further into HIPs and the impact and risks they may have on brokers. AMI this week published its response to the Office of the Deputy Prime Minister’s consultation on the introduction of HIPs.
Fay Goddard, deputy director-general of AMI, said: “The consultation process has progressed, there is increased concern from our members of the unintended consequences that the introduction of HIPs may have on both consumers and the mortgage intermediary sector.”
AMI warned there is a potential for property companies, estate agents and lenders to use the HIP as a marketing tool for mortgages.