Recent research on the site showed mortgage brokers’ reluctance to engage with the FSA on the consultation process, with 72% of brokers saying they thought the FSA were not interested in their views.
Interestingly 61% of respondents thought that the MMR would cause some detriment to the market but didn’t think that they could do anything about it. Respondents also had some harsh words for the FSA including:
“Lack of understanding by the FSA of the issues facing customers, means many of their proposals are ill-considered and will positively harm the prospects of many individuals that already have mortgages - not to mention the access to mortgages for new borrowers.”
When contacted, an FSA spokesperson said. “Mortgage intermediaries play an important role in ensuring there is choice and diversity for consumers in the mortgage market. The FSA welcomes comments from all firms when we consult on our policies. It is vital we get as many views as possible, from as wide a range of firms as possible.
“If the market wish to respond to us via organisations like TCFInfo, it should feel encouraged to do so as we will take on board these views.”
This is an encouraging sign that the FSA recognises the need to be more flexible in the way it takes feedback from smaller mortgage brokers.
Frank Eve Chairman of the TCF Lender Forum said: “TCFInfo is committed to encouraging mortgage brokers to ‘Join the Debate’ and we will continue to take regular surveys which will be submitted to the FSA and shared with the CML and AMI. So now it is down to individual mortgage brokers to take the FSA at their word and commit to join in.”
Robert Sinclair, director of AMI, commented: “I am interested to find out why so many think that the FSA will not listen, as that is not my experience where we present robust points. Perhaps there is a difference between their experience with supervisors and the small firms contact centre and my contact with those in policy.
“This remains one of the FSA's biggest challenges. AMI remains engaged on behalf of its members and has been encouraged by recent announcements by the FSA that indicate that the next consultation on the MMR might be more pragmatic. It is essential that we all engage in a constructive manner to deliver good and balanced consumer outcomes which are best delivered via a broker.”
