And with numerous lenders still not stating if they will deal with unregulated packagers, concerns are mounting for the future of pure packagers post-‘Mortgage Day’.
Robin Gordon-Walker, spokesman for the FSA, said: “In general, we don’t want to take on people who don’t have to be regulated. There is an active process of us rejecting applications on the grounds that the applicant doesn’t carry out regulated activities. On the application form the packager has to put down what regulated activity it does, If it is blank, we return the application.”
Matt Grayson, public relations manager at BM Solutions, said: “We will only use people who are regulated. If the pure packager cannot be regulated there is not much we can do about it.”
John Mawdsley, director of pure packager The Mortgage Partnership, commented: “It is down to how the packager interprets the rules. In my view if a pure packager sends in an application with the regulated activities left blank, they are not interpreting the rules correctly.”
John Rice, managing director of the Regulatory Alliance of Mortgage Packagers (RAMP), said: “For lenders that have said they will only deal with regulated packagers this is a very difficult stance to take. Clearly it is not fair to those that cannot be regulated. It’s a case of catch-22.”
