MCCB would like to thank the majority of its registered intermediary firms for their positive response to requests for prompt action on receipt of the renewal forms.
Record numbers of firms have responded and renewed their registrations prior to 31 March, which indicates that MCCB’s simplified process and low final registration renewal fees have been well received.
The positive support for the renewal will allow the non-statutory regime to remain robust and comprehensive, and means the industry will meet the Treasury’s request for continuity of consumer protection arrangements under the Code and MCCB in the transition to statutory regulation. This is an important step in safeguarding thereputation of the mortgage industry.
MCCB reminds remaining firms that renewal requests received after 31 March and up to 30 April 2004 will continue to be processed, but firms may not be included on the disks issued to lenders until June. This will mean that firms risk delays in the
processing of their mortgage business in the interim period, while lenders check their registration status.
It is very important for firms to note that registration renewal forms received after 30 April 2004 will not be accepted for renewal. After this date the firm will have to apply for registration as if it were a new firm. This will involve additional administration, the need to complete a new application form and, importantly, the firm will incur the additional Fitness and Propriety checking fee. A new registration number will have to
be issued in such cases – which in turn may involve the firm in additional costs for re-print of stationery.
As MCCB registered lenders will continue only to accept business from MCCB registered intermediary firms in the transition to statutory regulation, it is essential that firms that 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 arrangements in the FSA authorisation process for MCCB registered firms in ‘good standing’, firms must maintain their MCCB registration until ‘Mortgage Day’
(31 October 2004); firms that are not MCCB registered will be subject to additional scrutiny from the FSA.
Luke March, Chief Executive. MCCB said:
“We are delighted with the response so far – in terms of progress against our timetable, we are significantly ahead of any previous renewal exercise. However we urge those firms still sitting on their form to renew now to ensure they have unbroken
MCCB registration. This is important as regards both continuity of business and due credit in the FSA authorisation process.”
