The code is intended to complement the current packager agreement that Kensington has and was implemented from the start of statutory regulation.
It stipulates that packagers must be open and honest with intermediaries and the public, clearly state whether it is regulated or not, and allow Kensington access to their files and records.
Firms are also only allowed to accept business from regulated intermediaries.
Keith Street, director of sales at Kensington Mortgages, commented: “We developed the code based on packager feedback and feel that it will become an essential tool to the Kensington packager relationship as we embark on this newly-regulated era.
“Our packager code also demonstrates our on-going commitment to, and support of, the packaging community.”
John O’Brien, operations director for the Professional Mortgage Packagers Associates (PMPA), commented: “The key behind this announcement is that lenders are showing they now have to take more responsibility for the business they receive and lay down parameters for their business partners.
“The fact that they are doing this should be seen as an encouraging sign for the packager community, as it show Kensington have a long term plan to continue doing business with us.”
John Rice, managing director of the Regulatory Alliance of Mortgage Packagers (RAMP), also welcomed the news. He said: “Even post-‘Mortgage Day’ there are some packagers who are not operating best practice.
“This sort of code means that if they don’t come up to the required standards then lenders will stop using them, meaning more business for people like ourselves.”
