The deal aims to clarify and confirm the different roles and responsibilities of lenders and their distribution partners.
The Council of Mortgage Lenders (CML) joined the talks with the Intermediary Mortgage Lenders Association (IMLA) and the Association of Mortgage Intermediaries (AMI) after the dangers posed by the Mortgage Market Review became apparent.
Director general of the CML, Michael Coogan, told Mortgage Solutions: “The industry will be able to make a collective response rather than risk the FSA seeking to divide and rule by separating lenders and intermediaries, who in many regards have shared interests in delivering valued services to their customers.”
Income verification and affordability are two important areas of discussion, said Coogan, but said the bigger picture also needed a more “joined up” response.
“We need to rebuild confidence and a shared vision about the “normal” competitive market of the future in the UK, in which intermediaries will continue to have an integral and valuable role to play, and in which we will also hopefully have a diverse range of lenders,” he said.
Coogan said the CML has been characterised as anti-broker but he flatly denied it, adding: “The CML is anti-poor quality advisers and intermediaries who abet customers to commit fraud.”
Coogan said contract agreements and dual pricing have not been part of the discussion so far, but added nothing had been “ruled out” at this stage.
Sally Laker, managing director of Mortgage Intelligence and Mortgage Next, said: “In this new environment, what brokers need is to understand what lenders need. A few years ago it was the other way round.” She added that now brokers need to find out how to make lenders feel comfortable enough to use their services.
Colin Snowdon, chief executive of new lender Aldermore, said IMLA is the lending organisation with a real focus on the intermediary lending industry so it makes sense that IMLA is putting the rules of the game in place.
“If the industry doesn’t do it, the FSA will undoubtedly get there first,” he said.
