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Mortgage Market Review

17.11.10

The 98 page Consultation Paper for the Distribution and Disclosure part of the FSA’s Mortgage Market Review has been published with a fanfare of trumpets, only losing it’s place on the front pages because a couple of nice young people decided to get married.

In terms of it’s actual content, (I must admit I am still reading it), there are a few headlines that were pulled out on the initial press release:-

* Replacing the obligation to issue an Initial Disclosure Document to the customer with requirements to clearly and prominently disclose key information about how the intermediary will be paid and the service they offer
* Changing the trigger points for providing the Key Facts Illustration to minimise information overload on consumers and reduce burdens on firms
* A requirement for all individuals that sell mortgages to hold a relevant mortgage qualification ensuring appropriate professional standards across all sales
* Replacing the existing labels used to describe the firm’s service with the Retail Distribution Review’s ‘independent’ and ‘restricted’ labels
* Requiring firms to disclose to customers whether they will consider deals that can only be obtained directly from a lender

To be honest there is not alot wrong with any of this and it is important to make sure that consumers are in no doubt whatsoever as to who is giving the advice and whether they are truly independent or not, in fact whether they are actually getting advice at all.

More on this to come so watch this space…

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Andrew Montlake

Written by Andrew Montlake

Andrew Montlake, better known as Monty, began his journey with an Hons degree in Economics & Politics before starting in the mortgage industry in February 1994. As a main founder of Coreco in 2009, he successfully grew the brand, marketing, and communications, and was made MD in 2019 focussing on the overall vision, strategy, and culture of the company. As Coreco’s media spokesperson, Andrew can often be seen or heard on TV and radio as well as regularly commenting in the national, local, and trade press. He is the author of this acclaimed Mortgage Blog and is well-known for his social media, podcasts, and public speaking. Andrew is now proud to serve as Chairman of the Association of Mortgage Intermediaries, (AMI) as a cheerleader for the Mortgage Industry as a whole and continues to work at the coal face, writing mortgage business and advising clients.

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