The Mortgage Code Compliance Board (MCCB) is pleased to announce that the fees set for its final six-month renewal period are considerably below the pro-rata 2003/4 levels. The benefits of MCCB's careful management of its activities and budget over the past four years are thereby being passed on to registered firms through these significantly reduced renewal fees.
The fees paid by lenders and by intermediaries have been reduced. For intermediary firms there will be no firm registration fee and the sales staff fee will be at a rate of considerably less than 50% of the fee payable in 2003/4. In addition, MCCB has announced that new applications will be processed at lower fee levels than 2003/4 and that it will accept new applications up until September 2004.
As examples, the renewal fee for an intermediary firm with a single sales person (for example a sole trader, who represent a significant segment of the total firms registered with us) would be just £40; a firm with 8 sales staff would pay a fee of £320; firms with 12 sales people would pay £420 and for a very large intermediary firm with 1,200 sales staff the fee is £18,000.
The fee income generated from the final renewal exercise will enable MCCB to operate effectively, as requested by the Treasury, FSA and the industry until 'Mortgage Day'.
MCCB will be mailing all registered intermediary firms in late February to invite them to renew their registration for the period 1 May - 31 October 2004. MCCB intends to make the renewal process as straightforward as possible and, given that the FSA is also now processing applications for authorisation, MCCB will require one simplified form to be completed and returned with a cheque for the appropriate fee.
MCCB continues to work closely with the Treasury and FSA in the transition period. The Treasury has indicated that the Mortgage Code and MCCB should continue to regulate the industry and provide effective consumer protection until statutory regulation is implemented. It is therefore vital for the industry's reputation that the non-statutory regime remains robust and its coverage comprehensive until then.
MCCB registered lenders will continue only to accept business from MCCB registered intermediary firms in the transition period, so it is essential that firms who wish to remain in the industry renew their registration and their commitment to the standards set by the Mortgage Code.
In addition, and very significantly, the FSA has confirmed that to benefit from due credit firms must maintain their MCCB registration until 'Mortgage Day' (31 October 2004); firms that resign their registration will be subject to additional scrutiny.
Luke March, Chief Executive, MCCB said:
"We are pleased that the Mortgage Board's careful financial management has enabled us to reduce fees for lenders and intermediaries. A seamless transition to the FSA on Mortgage Day has always been the goal of the Treasury, FSA and MCCB, with the full support of the industry. As well as ensuring that the industry's reputation is maintained through continuity of
consumer protection arrangements, a full renewal will allow all firms in good standing to receive due credit towards FSA authorisation."
