Mortgage brokers operate well below standard

26/11/2007

The Financial services authority (FSA) has found that several mortgage brokers were operating well below standards.

The FSA are looking to do a further review during January 2008, on mortgage quality via advice and processes, the FSA are carrying out a correlated development which is looking at the level to which lenders are gathering the requirements to lend reliably.

An overview on self-cert targeted 48 brokers, many of whom which were alleged of breaching FSA rules. Data confirmed many serious failings, together with readiness to proceed with arranging a mortgage regardless of doubting the accuracy of financial information clients were giving them.

Stephen Bland, FSA retail intermediary commented: “We saw a number of good brokers who are meeting the required standards and they are being undermined by the negligence or wilful non-compliance of others.

Mr Bland added: "Overall there is a need for a big improvement in senior management's use of management information to help achieve the fair treatment of their customers to achieve the progress we and the industry as a whole want to see.”

The FSA are bringing forward information and examples of high-quality and unfortunate practice to aid firms assess and advance their individual progress.

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