The Association of Mortgage Intermediaries (Ami) has hit back at the regulator’s latest review and its promises of more to come, calling for the “fragile” mortgage market to be left alone.
This week the Financial Conduct Authority (FCA) published the results of its responsible lending review, revealing it planned further investigations into suspected conflicts of interest in mortgage advice networks.
Ami chief executive Robert Sinclair expressed his disappointment at the FCA’s stance.
“Some might applaud the FCA decision to challenge the results of its own MMR, but Ami is concerned this will only introduce uncertainty into what is still a fragile market,” read a statement from the trade body.
“We are struggling to see the need for even a targeted market study, as the bulk of the issues could be addressed by thematic work and supervisory action.”
The FCA announced plans for a ‘targeted market study’ in the fourth quarter of this year, focused on consumer choice in the mortgage market and the impact of borrowers’ increased use of brokers.
Mr Sinclair criticised the paper for failing to differentiate between brokers who give good advice, and a sales-driven lender.
“We have no issue with lenders selling their own products, but this cannot be advice in the full sense of the word as any solution will be from a restricted product set,” he said.
Nick Green, a broker at Alternative Estates & Financial Services, said increased intermediation in the market since the Mortgage Market Review had led to better customer outcomes.
He added: “I have picked up more clients who have been declined by their own lender than ever in the last two or three years. The majority have not been given a reason why.”