Chris Cummings, AMI’s director of mortgages, said the team processing IFA Variation of Permission (VOP) letters for Principals and firms is operating in a ‘well-worn groove’ unlike the complex task facing the new mortgage and general insurance team.
He said: “We are hearing it could be August before the newer networks get their ‘minded to approve’ (MTA) letters - this is simply too long.”
Cummings said the FSA had ‘hardly been swamped’ receiving just over 4,000 applications to date, when nearly 6–7,000 had been expected.
FSA spokesman Robin Gordon-Walker denied there was a deliberate policy to speed through IFA Principal applications at the expense of new mortgage Principals but admitted there would be less information to gather for regulated IFA networks.
But the FSA has suggested that brokers should already be firming up relationships with networks applying for Principal status despite the fact no MTA letters have been sent out. The FSA has also suggested brokers should have secured their professional status under regulation by applying for both AR and DA status.
As a result an industry insider accused the FSA of downplaying the importance of MTA letters - the letters which show the FSA is likely to authorise the firm applying for regulatory status.
Commenting on the situation Bill Warren, network director at Complete Mortgage & Loan Services Ltd, said it’s proposition was experiencing few problems during negotiations as a result of the lack of a MTA letter.
But he added: “The delays are frustrating. The high business levels and time spent with third-party and broker firms trying to make crucial decisions quickly to avoid potential problems closer to ‘Mortgage Day’ is an on-going juggling act for us.”
