A Mortgage Solutions poll revealed that 83% of brokers felt they had not received enough guidance from lenders on what to expect.
But between the trade press news alerts, network roadshows and support from the Association of Mortgage Intermediaries is there anything more to say before the rules hit on 26 April?
In this week’s Marketwatch we ask what gaps still remain in the information being supplied by mortgage lenders.
Mike Fitzgerald, director of mortgage broker firm Brentchase Financial Services, thinks lenders should not be letting networks shoulder all the responsibility for educating brokers
Toni Smith, sales operations director of First Complete, says most lender communications have been piecemeal and non-specific
Dan Payne, managing director at Brytannic Extra Finance, thinks the whole industry should take responsibility for getting up to speed with the new regime given the breadth of resources available
Mike Fitzgerald, director of Brentchase Financial Services
There has been some useful assistance from the Financial Conduct Authority, its website has a wealth of information ranging from workshops, webcasts, road shows and online surveys.
There are policy papers available to download which give detailed information for brokers worried about the forthcoming rules.
But from my conversations with brokers over the past few weeks it seems that many are worried how the lenders will interpret the rules and that some lenders may take differing views on the rules.
It is imperative that all lenders follow the MMR rules in a consistent and uniformed way.
Brokers have told me that they feel more should be done by lenders to educate brokers about the MMR.
My own network, the Julian Harris Group, has been proactive in training brokers and I know of other networks which are also trying to help brokers.
However, I feel it is the lenders who should do much more in the short time available to make sure that MMR works in a positive way for all concerned.
https://www.mortgagesolutions.co.uk/mortgage-solutions/analysis/2333853/whose-job-is-it-to-fill-in-the-mmr-blanks-lenders-or-brokers-marketwatch/page/2
Toni Smith, sales operations director of First Complete
It is true that brokers have not had enough guidance as yet. Lenders are playing things very close to their chest and what information we have had has been piecemeal and wide ranging to such extremities that it is very hard for brokers to really get a handle on what will be required.
Some lenders want to take into account lottery tickets while others are clamping down so hard it is difficult to see how a client will get a mortgage.
From a network point of view it is vital that we provide brokers with as much information as we can to help them to prepare so we are communicating with them every week with the basics.
But most brokers want to know exactly what will be required of them by each lender: what checks each lender will need them to do, exactly what information they will need to gather from their clients and more specific guidance on what the different lenders themselves are doing.
It is the fundamental role of a network to pro-actively collate this information from lenders. In the last fortnight we have had a number of lenders coming into First Complete and working with us, so I do believe that as the 26 April moves closer it is starting to turn a corner.
Now we have to make sense of all the information and communicate it to the brokers and run meaningful workshops for our brokers throughout the country.
Dan Payne, managing director of Brytannic Extra Finance
Although communication with lenders is key we should all be taking responsibility in getting our businesses up to speed with the new regulatory regime.
We should all know the MMR sets out the case for reforming the mortgage market with the main aim being continued access to mortgages but preventing a return to the poor practices that we saw in the past.
There should be nothing scary that the suitably qualified professional broker cannot get to grips with.
Lenders have begun to monitor broker submission quality, analyse lending profiles, client profiles and implement changes to assessing affordability.
That said many are still changing and tweaking and with just over one month to go could be considered as leaving it to the last minute.
The FCA has provided road shows and workshops for those preferring face-to-face interaction as well as distance channels such as the web and telephone contact centre should any broker wish to discuss.
In addition there are countless compliance companies willing to provide a consultancy service to ensure practices and producers are aligned to what the FCA expects.
For the avoidance of doubt any broker not sure on MMR and the impact on brokers and lenders, needs to be pro-active. Pick up the phone and ask your question.
