The company is concerned that the onset of regulation and the fraught application process will mean that a significant amount of intermediaries will opt out of the market, as they view mortgage selling as "too much hassle for not enough money".
MSMS blames this attitude on the poor service that many providers extend to the IFA community. Often advisers complain of lengthy policy turnarounds and decision in principle; failure to return phone calls; the annual 'stacking up' of policies; and, more commonly, avoidable administration errors.
"Outdated IT systems, disorganised administration procedures, and a lack of resources are largely to blame," said Joe Bradley, chief executive of MSMS.
"The onset of regulation will only make this worse, as the complexity of the paper chain will unavoidably spiral. And it seems that the poor track record of support from lenders' administration departments could make the prospect of being both monitored and serviced by them deeply unattractive to intermediaries."
The company pointed out that IFAs do have a hassle free option in BSPs (Business Service Providers). Bradley said: "BSPs, such as MSMS, have to sit the same examinations as intermediaries in order to operate. But unlike an intermediary, who should concentrate on sales, a BSP's specialism is to make sure the correct documents are being processed at every stage of the transaction. As a mortgage specialist they can keep much tighter control over the whole administration process, and ensure it is carried out according to the regulation."
