IMLA: FSA Mortgage Effectiveness Review

Peter Williams, Executive Director of the Intermediary Mortgage Lenders Association, comments on the second stage of the FSA’s Mortgage Effectiveness Review: “IMLA welcomes the publication of the second stage of the Mortgage Effectiveness Review – although in reality the key findings are unsurprising and in some respects take the industry little further. Almost all sub-prime mortgage sales are through intermediaries, who are clearly best placed to take account of the very specific circumstances that such borrowers face. Not surprisingly, customers rely on their broker’s professional advice and expertise.”

“In many respects the findings are most salutary for the FSA. In terms of the Mortgage Conduct of Business rules(MCOB), the study throws into question the effectiveness of the regime in place and the degree to which it is over-engineered. Hopefully findings such as these will be fully reflected in the MCOB Review and its outcomes.”