The confirmation of the demise of The Mortgage Business (TMB) had a sad inevitability about it. It came as little surprise, as the appointment of Nigel Payne as managing director of BM Solutions in addition to his TMB role had the rumour mill working overtime. But for HBoS, the giant of UK mortgage lending, to have to rein in its heralded multi-brand strategy is a grim reminder to us all of just how significant this liquidity squeeze is.
However, the move also presents an opportunity for HBoS, and by extension, the rest of the market. With Abbey and Woolwich adopting increasingly aggressive tactics for market share, HBoS needs to make the most of its streamlined model, and adopt a more innovative approach. It tends to be the case that where HBoS leads, the rest follow, so we should all be hopeful the firm moves on with impetus.
In terms of momentum, few could challenge the FSA at the moment. Its banning of brokers for fraudulent behaviour has been little short of prolific – 19 brokers have bitten the dust already this year for submitting false applications, with two more banned this week. It would be a brave man that bets against that number continuing to rise for the rest of the year.
It is no coincidence that the FSA has taken on a more proactive, disciplinarian role after the criticism it incurred for its handling of Northern Rock last year. But its hyperactivity poses the question of whether there has been a recent rise in mortgage fraud, or whether it is an area the regulator has, up to now, not given due attention.
What is beyond question is that intermediaries must take a positive role in shaping the industry’s defences against financial crime. With the National Fraud Strategic Authority due to formally launch in October, now is the time to get involved. n
