Both lenders and networks have admitted they are concerned by the Financial Services Authority’s (FSA) reluctance to name names and the air of suspicion hanging over the industry is being felt by both sectors.
Linda Will, managing director of Accord Mortgages, said: “I think the FSA hasn’t named the four firms because the problems identified haven’t been proven across the board. But this does cast a shadow over the market and there is a worry that all networks will be tarred with the same brush.”
Networks have also admitted the uncertainty could potentially turn away new business, through both ARs and lender, as speculation increases.
Paul Shearman, mortgage proposition director at Openwork, commented: “I’m surprised the FSA has not identified who the networks are. This seems to be at odds with the regulator’s approach, which is usually that the publicity of wrongdoing is just as important as taking action.”
This ambiguity is likely to continue for a few weeks at least.
Richard Griffiths, managing director at Network Data, said: “The next six weeks will be interesting in terms of who is recruiting, as this will be the only indicator.”
However, the FSA remained unwilling to release the names of the networks implicated.
A spokesperson said: “The firms know who they are and we are working with them to make sure they are complying with our rules and regulations.”
