The Association of Mortgage Intermediaries has signalled its desire to work with mortgage lenders to resolve issues raised in today's FSA report on the sub-prime mortgage market.
Commenting on the report, Chris Cummings, director general of AMI, says: “AMI will work with its members to address the areas of concerns raised by the FSA.
"We are also keen to set up a working party with lenders to discuss how we can work together on these issues.”
The FSA today identified several failings among both intermediaries and lenders when selling sub-prime product to sub-prime consumers.
Inadequate documentation on the reasons for giving advice was one of the major shortcomings identified in the report.
Cummings adds: “AMI does not defend poor record keeping and we were surprised at the number of consumers paying early repayment charges to remortgage.
"Whilst this doesn’t necessarily indicate poor advice, we agree that documentation of the reasons for the advice must be clear.”
The investigation resulted in the FSA taking action against five intermediary firms who were found to have made major failings in ensuring their customers received appropriate advice and products.
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