Ray Boulger, senior technical manager at John Charcol, has been described as a guru of the mortgage industry. Having been involved in the mortgage market for over 15 years, he admits his role in AMI was a natural progression, and a challenge he relishes. He said: “I have been at John Charcol since 1989, prior to which I worked for an IFA firm. I was asked to join the steering committee in 2003, prior to the set up of AMI. It was very clear at that time that mortgage intermediaries needed a trade body to represent them. The Council of Mortgage Lenders (CML) had been operating for a number of years and it was felt, that with the FSA going to regulate the sector, intermediaries would need someone to represent them.”
He adds his welcome surprise at how successful the organisation has been since its inception. “Our prime role was to try and influence the regulator and the only way that could be done is if we had a large membership,” he explains. “AMI has a current membership of about 80 per cent of the intermediary market. This is testament to Chris Cummings and the team, and the healthy working relationship it has with the regulator.”
Boulger says that AMI factsheets, roadshows and the general advice it provides, make it a valuable source for intermediaries. “AMI provides a huge amount of documentation and factsheets to help educate people on regulatory requirements. The website is also very useful and most of it is only available to members, and the experience of the board members can only help the membership,” he says.
However, despite its ability to influence change and its relationship with the FSA, Boulger admits proving the success of AMI is hard to achieve. He explains: “We have a good working relationship with the FSA, but a lot of the work we do is completed behind closed doors. In many instances, AMI has been able to influence the agenda before the agenda is apparent to the wider mortgage community.”
However, he adds AMI cannot go headlong into asking for changes to regulation, and must follow the correct procedures, in a measured way, to ensure AMI achieves what it sets out to. “People have to tread the tightrope very carefully to ensure the working relationship with the FSA continues.”
Member issues
Boulger believes AMI has pushed a number of issues since it started, and admits new issues will gain prominence during 2006. “Home Information Packs (HIPs) have not really occupied the thoughts of many AMI members, but people are starting to realise how important they could be. Regulation has always been a big factor and following regulation, the initial months after ‘Mortgage-Day’ were spent reporting to members of how to interpret rulings.”
Boulger believes that the regulatory reporting rules will cause further problems. He explains: “The first set of reporting is due in soon, but the FSA requirements on what exactly they want is unclear. If the larger companies are having trouble with it, you can imagine how much trouble the smaller broker firms are having.”
Representing the larger intermediary firms, Boulger admits the MCOB review will affect member firms differently dependant on size, but says: “AMI has to take a global stance over the issues.”
Board concerns
With the Board members providing an overview of the industry, due to their workings in the different pockets of the mortgage market, Boulger believes the AMI Board combines experience and knowledge of the market and says the Board experience provides a ‘blanket’ across the industry, with every market sector represented.
However, he agrees with fellow board member concern that AMI actions benefit the whole of market. “It is a frustration that non-members are able to benefit, but that is just a fact of life and we can’t let that dictate how we work. We are never going to get 100 per cent of the market, but to grow as quickly as we have has shown the work we have done.”
Boulger admits his main frustration lies with the FSA. He says: “On the regulatory front it is very hard to get anything done quickly, and it is frustrating that it takes so much time to make changes. The FSA is aware that changes need to be made. The issue of Financial Promotions, for example, was raised soon after ‘Mortgage-Day’, with the FSA responding by saying it would change it. However, the issue is still to be sorted out, over 16 months since it was raised.”
The future
With Boulger’s position on the board, member representing large intermediaries, set to be decided in elections in 2007, he admits he would love to continue working with the trade body to provide help and guidance, and influence change within the market. “I would like to continue working at AMI, giving something back to the market,” he says. “It is a two-way process and having regular meetings with senior people in the mortgage industry is a good way to start discussions, or follow up member concerns. It is important the market continues to be represented and any individual points or commercial interests that board members have must not dominate proceedings.”
