A review of standards of Key Facts Illustrations (KFIs) and Initial Disclosure Documents (IDDs) by the FSA has resulted in a ‘Dear CEO' letter sent out to all mortgage lenders warning that standards must be raised.
Standards are so varied across the industry that the regulator is demanding companies review their documents the letter reveals. ”It is vital that firms provide consumers with clear, straightforward and comparable information to help them understand the services and products being offered, shop around more easily, and make informed decisions,” the FSA says in a statement on the issue. The regulator’s review of documentation has been ongoing since it took over responsibility for the mortgage sector last autumn. Problems encountered include deficient documents not containing the minimum...
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