MMR roadshows abate broker fears

Robyn Hall

February 8, 2013

Of those who took part in the survey, 12% said they were very worried while 46% described themselves as somewhat worried.

Robert Sinclair, chief executive of the Association Of Mortgage Intermediaries, said: “Clearly there will be things to change next April. All of us have to be concerned about what impact it might have but our job is to try and minimise that impact as far as brokers and consumers are concerned.”

Sinclair said that AMI has not seen anything in the MMR which should greatly concern brokers but until the mood has been gauged from mortgage lenders as to which way they will choose to handle the changes it is difficult for the broker market to obtain a clear view of how the post MMR landscape will look.

As part of its MMR implementation strategy the Financial Services Authority ran a series of road shows for intermediaries and lenders to help them understand the reforms and what they would mean for their businesses.

The FSA said the events, which finished at the end of January for brokers and 7 February for lenders, were received positively by both parties.

Peter Williams, executive director of IMLA, said that it should not be presumed however that the implementation process would be a smooth one.

He said: “Removing the non-advised sales process means that most interactive sales, carried out in person or by telephone, will need to be advised. Before we reach the implementation date there needs to be a real understanding of what constitutes advising or arranging mortgage transactions under the new regime and who is included or not.”

He added: “Clear and accepted definitions will make a world of difference to both lenders and brokers in the intermediary market while any lack of clarity could create all manner of difficulties.”

Sign up to our daily email