New mortgage legislation welcomed by brokers association

28 June 2010

Written by Simon Whittaker

New plans from the Financial Services Authority (FSA) to make all staff working for mortgage providers personally accountable for protecting customers have been welcomed by one organisation.

The Association of Mortgage Intermediaries has stated that it supports the plans, believing that if branch-based staff are giving advice on home loans, they should be qualified to the same level as brokers.

"This will provide a consistency that will continue to enhance consumer trust in our industry," director of the body Robert Sinclair explained.

However, the organisation admitted some concerns about the FSA's proposals, unsure if an appropriate level of authority has been applied.

It called for futher clarification on the regulations that apply to re-mortgaging, arguing that the customer needs as much protection in this situation as when they borrow for a new purchase.

Meanwhile, the Council of Mortgage Lenders had a mixed reaction to the FSA's announcements, saying it was pleased to see that minor companies, which do not deal with a large amount of arrears, will be able to apply for a waiver from some of the stricter regulations, but feels that the need to extend accountability across the board is costly.

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