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MS Poll Result: 60% of brokers ignore due diligence

by: Mortgage Solutions
  • 28/01/2011
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In the latest Mortgage Solutions poll, 60% of brokers said that they don't do due diligence checks on all their referral partners.

Around 20% said that they did check out all their referral partners, and a further 20% of brokers said that they did not see the point of it as accounts information is too out-of-date.

Richard Adams, managing director of Stonebridge Group, said that to improve the reputation of the industry more brokers should be carrying out due diligence.

“Before the recession, this was not something brokers were too concerned about, but now we need to look at it increasingly to make sure that brokers and legal service providers take steps to retain people’s faith in the industry and avoid any financial issues with suppliers.”

“Brokers who do not perform due diligence need to be cautious of the risk they’re taking and make sure that they only deal with reputable firms,” he explained.

Adams added that all networks should make sure that its members carry out due diligence.

“It’s not only in the interest of a company to carry out due diligence but also in the interest of clients or members, therefore we make it a priority in our network to ensure that everyone carries out stringent tests.”

This week’s poll question is: A cross-party group of 17 MPs have called for nationalised bank Northern Rock to be remutualised. Do you agree with their proposal?

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