Some of the biggest mortgage networks looking for principal status in the Financial Service Authority’s (FSA) regulatory regime are set to fail in their initial attempts, according to both Inter-Alliance and Sesame.
Stuart Wilson, mortgage development director at Inter Alliance, said the lack of experience in dealing with the FSA would mean some firms would have problems meeting the standards. He said: “There will be some big names going to the FSA and being told: ‘you are joking, you still have to do this, this and this.'”
Andy Young, head of mortgage services at Sesame, agreed, and said fewer principal firms would emerge than expected. (See interview on page 20.)
Sally Laker, managing director of network Mortgage Intelligence, said: “Networks will have to substantiate that they can deliver what is promised, and be financially stable to ensure the promises can be delivered.”
Laker refuted that being new to FSA regulation meant failure. She saw no reason why the necessary processes and standards could not be delivered and felt that the technology being offered by some of the new principal firms would be more mortgage focused.