The annual renewal process – which forms one of the busiest periods in the Mortgage Board’s year - has been made as efficient as possible for firms by pre-populating documents with information already held by the Board, with firms asked to confirm or amend this information as appropriate. Registration fees for this renewal period have not been increased from the 2002/3 levels. As in previous years, the Mortgage Board has highlighted the benefits to firms of responding promptly to the renewal.
This year firms will also be required to send through policy certificates as evidence of Professional Indemnity Insurance (PII) cover being in place. PII is required as a condition of registration to ensure that firms can meet any award that might be made under the Mortgage Code’s complaint and redress rules.
In terms of consumer protection and the industry’s good reputation, it is essential that firms renew their registration in the transition to statutory regulation in October 2004 as the Mortgage Board will continue to remain the sole regulator until this point. This requirement has been emphasised by the Treasury and by the FSA’s indication in CP146 that registered firms in ‘good standing’ with MCCB will receive ‘due credit’ in the future FSA authorisation process.
Luke March, Chief Executive, the Mortgage Code Compliance Board, says:
“The Mortgage Board is more active than ever and as before we envisage a positive response to the renewal process from all of our registered firms. We cannot emphasise enough the importance of firms responding quickly to facilitate a seamless renewal process, allowing firms uninterrupted continuity of business”.
Responses are due no later than 31 March to guarantee inclusion on the first register disk of the 2003/4 registration period, which is issued to lenders at the beginning of May. Firms which respond after 31 March may not be included on the lender disk for the 2003/4 registration year until June – and will therefore risk delays in processing their mortgage business while lenders check on their status.
Any firm which misses the 30 April deadline for renewal will need to apply for registration as if it were a new firm. In such cases the firm will be treated as a new applicant for registration and will therefore incur the additional Fitness and Propriety fee. A new registration number will also have to be issued – which in turn may involve the firm in additional costs for the re-print of stationery.
