Under the Mortgage Market Review, Ami’s Robert Sinclair says advisers should expect to see stronger panel management and that lenders may increase intermediary distribution as they take time to adapt to the changes.
In the latest FTAdviser Guide to the Mortgage Market Review, Mr Sinclair said in the short term the MMR was likely to produce more business via intermediaries and longer interview times for consumers, together with more detailed information requests.
He warned this might also lead to it taking longer to get an offer.
Taken together with the FCA’s overall more interventionist approach, Laurence Baxter, head of policy and research at the Chartered Insurance Institute, said the mortgage market will clearly be more tightly regulated than ever before.
The FCA’s first Financial Risk Outlook and Business Plan published in March of this year highlighted time and again the regulator’s intended new approach to its role, all of which Mr Baxter said will affect the diverse mortgage market.
Mr Baxter said: “Those operating in any retail market can expect to see a more proactive and interventionist regulator.
“The regulator has reiterated in several places the benefits to firms of adopting a customer-centric approach in their corporate culture that includes positive selling practices, a positive approach to improving the customer’s situation and not taking advantage of consumer psychology heuristics and biases.”