Speaking at the AMI annual dinner last night at London's Plaisterer’s Hall, Cummings said there was a real danger that regulation would "be done unto us rather than in conjunction with us".
He commended the work in progress by the Council of Mortgage Lenders, the Intermediary Mortgage Lenders Association and AMI to write down formally the roles and responsibilities of lenders and brokers in an effort to clarify each party’s accountability for the customer.
Cummings, also director general of the Association of Independent Financial Advisers, said AMI is keen to work with lenders, trade bodies and all other parties involved in the mortgage market to find a united view. And said the “ultimate good of the consumer” should be the industry’s “guiding light” in setting down industry objectives for regulation, giving three areas of focus.
First, he said there should be an open debate on social policy and property, saying homeownership is one of the cornerstones of British society which has helped social mobility and delivered a flexible labour market.
He said: “If this is to change it needs to be debated openly and honestly. It will change our market and impact on ordinary people.”
Second, Cummings said regulation should support consumer choice at the point when or if people choose to buy a property.
He said: “Regulation that prevents people from taking sensible financial decisions, such as when and how to buy a home, is bad regulation.”
And third, Cummings said the industry must better manage its reputation with policy makers, regulators and consumer groups.
He said: “If the mortgage market is not to be tarnished with the sins of other parts of the banking crisis we must look for a positive face for our work.”
Cummings stressed the importance of shifting away from a blame culture and moving towards a united front.
He concluded his speech, saying: “The mortgage market works best when the lender joins with the intermediary to help the borrower – it’s a perfect triangle with all sides supporting each other.”
