MMR Roadshow
If you have not had chance to attaned the FSA Mortgage Market Review roadshow then a useful summary of the points presented is as follows: Distribution Removing any specific regulatory requirement on mortgage intermediaries to assess affordability; Requiring mortgage intermediaries to assess in every sale whether a product is appropriate to the customers needs and circumstances; Requiring that all mortgage intermediaries hold a mortgage qualification and work to appropriate professional standards; and Strengthening the sales standards. In particular, they are proposing that: • firms assess whether it is appropriate for a borrower to take out a mortgage beyond their planned retirement age; • firms explore with consumers whether it is appropriate for them to take a further advance on their existing mortgage rather than remortgage and incur all the attendant costs; and • firms explore whether it is appropriate for a consumer to roll-up their mortgage fees and charges into their loan. Disclosure Replacing the requirement for an Initial Disclosure Document with a requirement to disclose key information on remuneration and scope of service early in the process; Replacing the existing complicated scope of service labels with the much simpler approach set out in the Retail Distribution Review – i.e. using ‘independent’ and ‘restricted’; Removing the requirement for an independent firm to provide consumers with a fee option; Removing the requirement for firms to provide a Key Facts Illustration where they are putting forward a direct-only deal; and Changing the trigger points for a Key Facts Illustration to minimise information overload when consumers are considering multiple products. Please remember these are proposals and the FSA are looking for feedback which you can either do via the website or using the following email address: Cp10_28@fsa.gov.uk
