With 18 years in the mortgage industry Rob Clifford, managing director of Mortgageforce and AMI board member, is in a prime position to comment on today’s market. Having represented regional firms as a member of the now defunct Mortgage Code Compliance Board (MCCB), Clifford was also heavily involved in the Certificate of Mortgage Advice and Practice (CeMAP) examinations.
“For three years I was a question author and examiner for CeMAP which proved to be very interesting, getting involved with an examination that most of the industry sat through in the run-up to regulation,” he says. “I was also a director of MCCB, which proved to be a good forerunner for me at AMI as I was discussing the same issues that still play a part now, including regulatory costs, professional indemnity insurance and fitness and propriety checks.”
Clifford represents the constituency of medium-sized regional firms and has extensive knowledge of this area, having already set up Mortgageforce and two similar regional brokerages during his career. He is keen to make it known that every board member also has a career in the mortgage industry. “AMI board members are not just that; they are directors and practitioners themselves, immersed in running networks, broker firms and so on and are actively involved in the market, doing the doing,” he says.
AMI has certainly made substantial progress in the last few years especially in the regulatory arena. Clifford puts this down to the tremendous relationship the trade body has with the regulator. Issues arising from Board meetings are easier to discuss with the Financial Services Authority (FSA) because of this. He says: “Chris Cummings and his predecessor have done an amazing job of creating brand new relationships with a brand new regulator.”
Having undertaken this relationship work, Clifford is keen to ensure AMI’s members are aware of the association’s stance. He says: “Our job is not to make a nuisance in the blind pursuit of member interests, but we have to firmly and logically argue the industry’s corner when necessary. I think the Board comprises a really interesting blend of experience and representation and I can’t think of an issue over the past 12 months where it has not felt it had the necessary expertise.”
Member benefits
Despite a prosperous and growing relationship with the regulator and a board comprising experienced individuals in tune with the needs of its members, Clifford does have frustrations that many of the plans implemented by AMI have also benefited non-member firms, an issue that is hard to get away from.
“One of the frustrations with the work of the Board is that it is not just members who benefit from the work we do, although it is inevitable that AMI will bring about certain things that benefit every firm,” he argues. “Some members are irked at the fact that non-member firms are benefiting from the work of AMI, but there are lots of generic benefits that non-members do not see.” Clifford believes any firm that chooses not to become a member on the basis they are already benefiting from the organisation is misguided. “It would be foolish for firms to take the view that they don’t need to sign up as they are reaping the benefits anyway. AMI doesn’t take calls or e-mails from firms who are not members in terms of hearing their interests and concerns.” Factsheets and guidance are issued on a member-only basis, and Clifford suggests that the election process to the Board allows members to air their views on industry topics and admits for members the title of ‘AMI member’ holds a certain kudos.
Market advances
In terms of the issues that will confront the market in the months ahead, Clifford feels technological developments will dominate industry thinking for many years to come. “Over the past four to five years the market has moved on a great deal, especially withthe increasing use of technology and I don’t think we are too far away from a true end-to-end mortgage stream. However, I don’t believe brokers have anything to worry about as the internet has provided the typical mortgage consumer with an overload of information and many of these do not like to take a £150,000-plus decision with the click of a mouse.
I think the role of the intermediary is as strong as ever as consumers still like face-to-face advice, which might explain why some pure internet mortgage companies have failed.”
He also feels the issue of Home Information Packs and qualifications for the lifetime mortgage sector will come to a head in 2006, with the AMI Board playing an active role in these areas if needed.
Enforcement
This year Clifford is keen to see the, much touted, hard-line approach from the FSA when dealing with non-compliant firms. “The FSA may have had competing priorities in the last 18 months and, once empowered, quite rightly focused on policing the perimeter and catching out firms who were not authorised. Most of the regulator’s focus then moved onto Financial Promotions, which I think is a sensible order as it is the first thing consumer’s see at the beginning of the transaction process.
“I think 2006-2007 will see the development of enforcement of early investigations bought to a head and I’m sure AMI will continue to grow as members realise the many benefits of the organisation.” It is the benefits that AMI brings which Clifford is keen to contribute to. He says: “If my post was due to retire in the near future I would seek re-election as I think I’ve bought a lot of regulatory and mortgage educational experience to the Board.”
Grant Bather is news reporter at Mortgage Introducer
Rob Clifford is managing director of mortgageforce
