Stephen Smith, housing director at Legal & General (L&G), has been involved in the mortgage industry for over 25 years, with roles at Abbey, The Mortgage Corporation and Homeloan Management Limited. He has been a member of the Association of Mortgage Intermediaries (AMI) Board since 2003, prior to regulation when the need for a trade body was most needed. With many in the industry concerned as to the powers of the Financial Services Authority (FSA), prior to its regulation of the mortgage market, Smith says the organisation has had a positive impact. “AMI is an organisation that helps redress the balance. As a result of our impact on the market, our members are better informed. We are a powerful trade body and have a healthy relationship with the FSA that can only help to benefit our members,” he explains.
He adds that the market is truly represented within the trade body, with Board members ranging from solicitors and those involved in the larger firms, right through to the one and two-man bands. “The Board is completely representative of the market and the Board members are all from different parts of the market. Some of them sit with the FSA, on compliance boards, so they know and have experience of both sides.”
Responsible for representing the larger firms on the AMI Board, Smith believes his experience and dealings with large companies, as part of his role at L&G, make him a suitable Board member and able to comment on issues across the mortgage market. “I have first-hand experience and perspective of larger financial services companies, which is an obvious advantage and, as I am also responsible for issues outside of the mortgage market as part of my work at L&G, I can relate to these to highlight important issues or ways of conducting business,” he says. As L&G has a large workforce, Smith adds he is able to tap into this to judge market opinion.
Issues
With the industry undergoing marked changes since the introduction of regulation in October 2004, Smith believes much of this has bedded in, but admits new issues will dominate both market and AMI schedules in 2006. In particular, he believes the introduction of Home Information Packs (HIPs) will bring concerns that AMI will ‘no doubt be involved in’. “Mortgage advisers will either be advantaged, or disadvantaged by the introduction of HIPS, depending on how they act. The food chain of estate agents all the way up is one in which the balance may change as a result of HIPs and advisers should be well aware of the issues,” he explains. He adds that FSA investigations and the MCOB review would also bring up challenges to AMI and its membership, with technology providing another source of potential concern. “AMI has led the way in technological standards in the industry and pushed the need to embrace it. We have influenced lenders, the regulator and intermediaries to change their systems to make them more technology focused and we want to continue with this.”
With technology, HIPs and market reviews likely to dominate the industry and the AMI agenda in the coming months, Smith suggests the AMI website and factsheets are invaluable sources of information for members. “The factsheets that AMI produces are based on feedback from members and also AMI research. We try to be as proactive as possible and AMI is trying to get on the front-foot as often as possible. The factsheet on the Purchaser Information Packs (PIPs) situation in Scotland is one of many issues that AMI has felt needed to be covered.”
He adds that the factsheets are only available to members, and are one of many member benefits available. “The factsheets that AMI publishes, and the conferences it holds, help to better inform AMI members to benefit their businesses and working practices. Our factsheets and part of the website are only available to members.”
Smith shares follow Board member concerns that the work AMI does also benefits non-members, but he admits it is a fact of life that is impossible to get away from. He says: “We are never going to get 100 per cent membership from the market, and we have to accept the work AMI does will benefit people across the market, if they are members or not.”
He further argues the trade body should not look for recognition for its work, and, although admitting it is nice to be praised for the work carried out, believes a great deal more can be achieved by being left to do the job it was set out to do, with few disturbances. He says: “You don’t look for endorsements as part of the AMI Board, and if you realise it is not the job of the Board to seek widespread recognition for its work then a lot can be achieved.” He adds that, due to AMI intervention and discussions, changes have been made within the mortgage market.
The future
Smith has seen vast changes to the industry during his 25 years – most notably since the introduction of FSA mortgage market regulation. He says AMI will continue to have a prominent and welcome role within the market, bridging the gap between the regulator and the market, and for this reason, Smith is keen to continue his role within the trade body: “I feel I have contributed to the Board since I was appointed to it, and in addition to my experience as a Board member, we understand the needs of the larger firms,” he says. He adds that the challenges in the coming year will make for very interesting topics of conversation for the industry and plans for action within AMI – a part of the job he does not want to miss out on.
Grant Bather is assistant editor at Mortgage Introducer
