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Brokers call for second charge lending regulation
More than a third of brokers think second charge lending should be regulated, according to a Mortgage Solutions poll to mark one year of statutory regulation.
Second charge lending topped the poll for
sectors brokers believed should be regulated at 37%, followed by sourcing
systems (26%) and commercial/buy-to-let lending (21%). The online survey also
found 57% of brokers believed the cost of regulation outweighed the benefits,
while 43% disagreed.
Of those surveyed, 88% believed regulation had not made any difference to their
clients. The remaining 12% believed regulation had had a negative impact because
of the increased cost and time involved in the sales process.
While the majority of brokers (37%) considered the greatest burden since regulation to be sourcing compliant key facts illustrations (KFIs), 27% also cited ensuring the compliance and training of staff to meet Mortgage Conduct of Business rules as an obstacle.
A further 20% believed the greatest burden to have been retail mediation activities return reporting, while 16% said other factors were to blame, including increased paperwork.
Commenting, Chris Cummings, director general of the Association of Mortgage Intermediaries (AMI), said: "Regarding the increased costs of regulation outweighing the benefits, I am amazed at the slim margin. We have all seen the cost of regulation but have any of us seen significant consumer benefit? I am not at all surprised the key issue following Mortgage Day was the ease of accessing compliant KFIs. In terms of training and competence, we now have to look at it not as a cost but an investment in a professional business."
Source: Mortgage Solutions Magazine
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