Brokers claim FSA self-cert action intensifying
With the FSA currently undertaking a review of the equity release market, a number of brokers have claimed the FSA is undertaking a similar review of the self-cert sector.
An industry source, said: “The FSA has made a definite effort to look at self-cert more closely in recent weeks and the intensity in the sector has definitely increased.
“The FSA still has the attitude where it doesn’t like employed people taking out self-cert mortgages and it seems as if, following its announcement of its fraud arrangement, it is active in the market trying to test it out.”
Kim Barrett, proprietor at KS Barrett & Associates, added: “I wouldn’t be surprised if the FSA is stepping up its involvement into self-cert. If there is evidence of abuse in the sector then the FSA is very proactive. It is doing its job, which is a good thing.”
Robin Gordon Walker, spokesperson at the FSA, said that the regulator had made no ‘extra push’ to look at the area of self-cert, but it still had reservations about brokers and lenders providing self-cert mortgages to regularly employed people with a stable monthly wage. He said: “The FSA’s self-cert position has been stated on a number of occasions. There is currently no project work on the area like that being undertaken in the equity release market, but brokers, lenders and borrowers all need to keep to the FSA requirements. The FSA has issues in some cases where the borrower is paid a regular salary but the lender or intermediary provides them with a self-certification mortgage product.”