Henry Woodcock, principle mortgage consultant at Iress, (pictured) has worked with three major lenders to assist their preparation for the new regulations.
He told an audience at the Mortgage Business Expo in London that many were struggling to train or recruit enough CeMAP qualified advisers in time.
“I think for many lenders, especially those with high volumes, it will be a case of getting over the line and adding the bells and whistles later. With most sales and many borrower transactions requiring advice a number of lenders are struggling to have enough CeMAP level three advisers on the ground by April 2014.
“They are looking to break-up the sales process into two or perhaps three segments, so the scarce and expensive qualified adviser has a focus on the advised element of the sale, product selection and recommendation.”
Woodcock said many lenders expect to make customers see an administrator before and after meeting advisers, something he said would make sales in branches ‘disjointed’.
“These lenders will use administrative staff to take the initial enquiry and perhaps the rest of the mortgage application entry after the advice, or the applicant may complete the application through online systems.
“The customer journey for some applicants is going to be disjointed and a less than optimal experience. Other lenders worry that any input from unqualified staff could lead to implied advice, or the qualified adviser will not have first-hand background knowledge of the sale.”