The warning was contained in its response to the Treasury consultation document Regulating Mortgages, where the CML recommended that the FSA regime should build on the achievements of the Mortgage Code Compliance Board to introduce an effective registration system for intermediary firms, and a cost-effective and proportionate approach to regulating mortgage advice. The CML was concerned in particular that that the FSA should not insist on authorising introducers and business-to-business firms that provide administrative services to lenders.
Other key points raised in its response were a reminder to the FSA of the wider context of the debate about mortgage regulation with proposed reform of consumer credit legislation at a European and national level, and the support of lenders for a single regulator for all secured loans. Crucially, the CML requested a 12 month grace period for the industry to implement the new requirements following publication of the final FSA rules in 2003.
Michael Coogan, director general of the CML, said: "We are continuing to make progress towards the clear, comprehensive and cost-effective regulation that mortgage customers and lenders need, but there is still some way to go. We want to help the Treasury establish the right framework for the FSA and are encouraged by their commitment to proportionate and cost-effective regulation. In our view, this should not include introducers and businesses providing administrative services to lenders. The useful work already completed by the Mortgage Code Compliance Board provides a solid platform on which the Treasury and the FSA can build."
