Director of AMI, Chris Cummings, accused some lenders of only preparing their branches to deal with transitional cases and failing to prepare the intermediary side of their business.
He said this had in some cases led to intermediaries having to send clients direct to branches in order to deal with drawdowns from or porting of their loans.
Cummings pointed out this naturally led to a loss of income for the intermediary and opened clients up to cross-selling from the lender. He called this situation “disappointing”.
He also said that with many lenders withdrawing products from the market in the run-up to ‘Mortgage Day’ some brokers had found that clients had mortgage offers withdrawn. In these cases he urged brokers to insist that the lender compensate the client.
“If you come across a lender that has problems with transitional cases, ask them what they intend to do about it,” he advised.
Tony Jones, managing director of Pink Home Loans, was also critical of the differing approaches taken by lenders with transitional cases.
“The approach of lenders has caused widespread confusion for brokers,” he said.
“There should have been a consensus on how to deal with this issue, perhaps led by the Council of Mortgage Lenders.”
Bernard Clarke, communications manager for the CML, responded: “What lenders have to do is fulfil the requirements of the statutory regime; it is up to individual members to decide how they do this.
“It is not up to the CML to impose a single policy on lenders over and above that of the FSA.”
The FSA said that it had always made it clear that the implementation of statutory regulation was never intended to impede or restart the mortgage application process.
Spokesman, Robin Gordon-Walker said: “Only where there is a significant material change do we require lenders to start the entire process again.”
