The detrimental impact of the credit crunch on the mortgage advice business may last for 18 months to two years, according to John Gummer MP, chairman of the Association of Mortgage Intermediaries (AMI).
Speaking at AMI’s annual dinner, Gummer says the current market turmoil is one of the most difficult times that any AMI members are likely to have lived through and warned that the impact of the credit crunch could continue to affect the industry for at least another 18 months.
Gummer also called for the FSA to change its approach to the advice industry, and recognise the value it adds for consumers.
“The FSA should recognise that the world had fundamentally changed, and it has to ensure this industry can prosper so it can be beneficial to consumers,” he says.
Speaking at the dinner, Chris Cummings, director general of AMI, added his plea for the FSA to refocus its activities to stop rogue traders, rather than increasing red tape for advisers.
The role of consumer honesty was also emphasised.
“Consumers need to be realistic about what they can afford, and they must be honest with their advisers to ensure they do not take on more debt than they can afford,” Gummer says.
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