AMI has been in talks with lender representatives and technology providers to discuss the need for brokers to test-drive lenders’ KFI systems before ‘Mortgage Day’.
But despite AMI’s pleas to lenders to keep brokers up to date on their preparations to create compliant KFIs, the CML is said to be taking a nonchalant attitude to the issue. It said it will not be urging its members to keep the industry aware of what stages they have reached in their production of accurate illustrations.
Bernard Clarke, communications manager at the CML, whose 144 members account for 98 per cent of UK residential mortgage lending, said: “We have been monitoring the KFI situation and are not aware of any problems. We are not taking a prescriptive approach. Each lender has its own plan for implementing the KFIs. The important thing is that they do it by the 31 October deadline.”
However, Clarke’s comments follow the revelation that Direct Line, a CML member, has become the first lender to pull its mortgage products for new customers due to its failure to produce compliant KFIs in time for regulation.
Ben Stafford, policy officer at AMI, said: “We need to see more progress being made. A lot of lenders are working on an individual basis so we will have to wait to see how this pans out. But we think it’s fair for brokers to expect that they will be able to test out the systems ahead of ‘Mortgage Day’.”
Mike Fitzgerald, sales director at Brentchase Financial Planning, said: “These trade bodies have different objectives so they are bound to clash. But it is crucial that everybody is aware of what’s happening and whether lenders are on target to get their systems ready.”
