AMI comments on FSA sub-prime results

The Financial Services Authority (FSA) has today (4 July) published the results of its thematic work into the behaviour of intermediaries and lenders in the sub-prime mortgage market.

Commenting on this review, Chris Cummings, Director General of the Association of Mortgage Intermediaries (AMI) said, “The FSA reports that its research did not identify any significant evidence of sub-prime mortgages being sold incorrectly to prime customers. This is exactly what we would have expected.

“The FSA, however, identifies several issues which give cause for concern for both lenders and intermediaries. AMI does not defend poor record keeping. And we were surprised at the number of consumers paying early repayment charges to remortgage. Whilst this doesn’t necessarily indicate poor advice, we agree that documentation of the reasons for the advice must be clear. “AMI will work with its members to address the areas of concerns raised by the FSA. We are also keen to set up a working party with lenders to discuss how we can work together on these issues.”