AMI slams 'small few' ruining mortgage advice

The Association of Mortgage Intermediaries (AMI) has moved to point out the good work of the “vast majority” of mortgage advisers after the FSA today criticised some firms for failing to treat their customers fairly.

The AMI says most intermediaries are honest and hardworking - adding “only a small few serve to damage the reputation of our industry” – and praises the FSA for highlighting this.

Meanwhile, the Council of Mortgage Lenders (CML) says the FSA must ensure any guidance it offers firms is “clear and unambiguous”.

Earlier today, the regulator published the findings of four thematic reviews into the mortgage advice arena, concluding there were still too many firms continuing to operate “well below standard”.

AMI director, Richard Farr, says: “We do not condone poor practice, and therefore strongly support the work the FSA is undertaking to root out firms that persist in tarnishing the image of the vast majority of good firms within the industry.

“The significant majority of intermediaries are honest hardworking individuals, however a small few serve to damage the reputation of our industry.

“It is important to note that many areas of strength were discovered during this review, and again we support the FSA for highlighting this.

“It is crucial in such a turbulent market that we highlight positives and not just focus on a small minority of failings.”

The FSA has pledged to help firms up standards and has started by publishing examples of good and bad practice on its website.

The CML is urging the FSA to ensure that its guidance is as clear and unambiguous as possible.

CML director general Michael Coogan says: “After three years of regulation, the FSA is right to expect its regulatory standards to be in place across the whole market. These findings are a wake-up call to those brokers who are behind the pace.

“But the FSA also needs to make sure that it sets out its expectations clearly and unambiguously, which does not always happen. This is particularly important for small broking firms.”

The FSA's findings today relate only to brokers, not lenders. The results of the FSA's review of the extent to which lenders are meeting their responsible lending requirements are due next spring.

Scott Sinclair
News Editor
020 7034 2636
scott.sinclair@incisivemedia.com