Brokers would like to see more intermediaries named and shamed by the Mortgage Code Compliance Board (MCCB), according to BM Solutions.
Research carried out by the lender found that 69% believe those not complying with the Code should be ousted publicly.
However, Brad Baker, spokesman for the MCCB, said a line had to be drawn between those who did not comply with the Code and those against whom disciplinary action was being taken.
In cases where a firm was not complying with the Code, Baker said the MCCB would work to get them back on track and that to publicly name them in such circumstances would not be appropriate, or indeed within the MCCB’s powers. Only, once a firm had been though the disciplinary process could it be made public, although Baker said this would not always happen. In the recent de-registration of 78 firms who had failed to meet the professional indemnity insurance requirements of the Code, Baker said the numbers involved had been too great to name the firms publicly.
From 1 May, Baker said the MCCB would also have the power to name firms involved in a disciplinary action that had been settled. However, he said this power would not be retrospective.
Although the MCCB has the power to name firms in such circumstances, Baker said it would not do so on every occasion. However, he was adamant this would not put the public at risk to rogue brokers, as all lenders were notified on a monthly basis of those that had been struck off the list.
However, Steve Sandiford of BM Solutions, said: ‘The MCCB should take note of the fact that seven out of 10 brokers would like to see them name and shame non-compliant brokers. The vast majority of brokers have invested time and money in becoming compliant. Therefore it is essential that the small minority of non-compliant brokers are brought to account.’
