FSA allowing banks to ‘railroad' mortgage advice

The Financial Services Authority is delaying its plans to introduce individual registration for mortgage brokers due to some lenders who are dragging their heals on the proposal, Countrywide claims.

The FSA said in an update on its website today (10 February) that it will indefinitely delay its plans to introduce individual registration for mortgage brokers.

Nigel Stockton, financial services director at Countrywide, claimed that Countrywide questioned why the FSA had stopped short of making clear their intentions on individual registration on the back of the Mortgage Market Review announcement in December.

He said: “And now we know why. It appears the FSA have been influenced by some lenders who were dragging their heels on the proposal. This is another example of large lenders railroading over consumer advice to the detriment of customers.

“Consumers should be entitled to know that the person sat opposite them or on the phone, giving what consumers think is ‘advice’ on the biggest debt they will ever take out is registered with an approved regulatory body, trained and qualified to do so.

“It sends yet another message how out of tune with public demand the banks are becoming.”

Mr Stockton believes the FSA should have taken the opportunity to create a level playing field for professional standards in the mortgage industry.

He said: “Last year, hundreds of millions of pounds worth of mortgage fraud was committed and the introduction of individual registration would assist with fraud prevention.

“We urge The FSA to reconsider and put individual registration for all advisors, including all lenders, firmly back on the agenda.”