Mortgage lenders are less likely to use IFAs if the Financial Services Authority (FSA) shifts responsibility for advice onto them, warns Michael Coogan, director general of the Council of Mortgage Lenders (CML).
Speaking on the latest edition of IFAonline.tv – entitled the Great Homeowner Debate – about the FSA’s continuing efforts to place responsibility on lenders for the advice given by mortgage intermediaries, Coogan says: “Lenders would not be happy to take responsibility for an advice process they have no control over.” He points out lenders and mortgage IFAs do not have a legal agency relationship but adds the relationship is not an “arms length” one either. When the FSA first proposed the implementation of mortgage regulation on intermediaries, consultation documents suggested lenders wo...
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