In particular to those that may not have been following the progress of the regulation in the consumer press where mention of the MMR has been thin on the ground.
Some of the more noticeable changes some customers might face when applying for a new mortgage or going through a contract variation include:
– Having to work with a lender or mortgage consultant to complete an income and expenditure form
– Experiencing a longer underwriting process due to having to go through an advice process, completing an income and expenditure form and having their mortgage stress tested to ensure current and future affordability
It appears that within the mortgage market so far, the focus has very much been on the need for lenders to hire qualified mortgage advisers and to ensure the right IT, systems and processes are in place – but what are lenders doing to make sure their frontline staff are prepared?
Consultants need to have the right skills to explain to customers why a longer underwriting process may be required, and why this will actually prove beneficial to them in the long run.
Soft-skill and process training for frontline staff are essential components of being fully compliant for April 26 and are something that HML has taken very seriously.
Council of Mortgage Lenders director-general Paul Smee recently said the industry needs to avoid the intended improvements getting in the way of borrowers accessing a mortgage while the changes take place.
This is a consequence that, no doubt, lenders and brokers alike will want to avoid and, as Mr Smee suggests, the industry will need to look back in a few months’ time to see how smoothly the MMR was embedded and any unintended consequences that have arisen from its implementation.
Jonathan Pattinson is chief risk and HR officer at HML
