First, the Mortgage Code Compliance Board has confirmed that lenders and intermediaries have almost universally renewed their registration with the Board for its final period of operation up to the end of October. Second, the FSA has announced that it has already issued 806 "minded to authorise" letters to firms seeking mortgage authorisation, and has received 3,684 applications for direct mortgage authorisation so far.
The continuing high level of support from lenders and intermediaries for the MCCB and the Mortgage Code augurs well for a smooth transition to statutory regulation. It also helps to ensure that those firms who are in good standing with MCCB gain due credit for this within the FSA's authorisation process.
Michael Coogan, CML Director General, commented:
"The MCCB has continued to demonstrate how effective it is by continuing to achieve near-universal registration from the industry in its final six months. This safeguards consumer protection under the Mortgage Code in the run-up to the beginning of FSA regulation from 31 October."
Chris Cummings, Director of AMI, said:
"The deadline has now passed for submitting applications to the FSA that are guaranteed to be processed in time for the start of mortgage regulation. Any firms wishing to be directly authorised who have not yet submitted their application need to do so as soon as possible to minimise the risk of not getting their authorisation in time."
John Maltby, Chairman of IMLA, added:
"Now that the first FSA "minded to authorise" letters have been despatched, intermediaries who are planning to operate as appointed representatives will soon have a better idea of whether their chosen principal is successfully on track for authorisation. By August, everyone should know where they stand."
