the power hour
here, the gatekeepers do have to be the lenders because an intermediary is going to have less complete information than individual lenders. Even individual lenders don’t have complete information but none of these things are rocket science. The tools that are available to lenders are such that the vast majority of abuse can be and generally is caught at a very early stage. The way we’ll make this work much more effectively is to make sure that all of those who are in a position to do so are feeding the information back to the FSA and you’re taking the promptest most effective action you can. What will make that more efficient? Well individual registration will make that much more efficient.
can you say what the most glarIng weakness Is amongst brokers In that sItuatIon? TS: When brokers go to verify identity and will sign off on a photocopied passport and say they have seen a true copy of the original passport. It’s that sort of naivete
which allows the broker to get duped. NS: Naivete is actually inexperience as well. We spend a lot of time training our first years making sure they’re not in that situation. JH: It’s an important point that the more traditional forms of verification like paperwork or telephone checks are less reliable. Lenders have developed fortunes on systems and processes getting to very robust outcomes without having to look at any paperwork. That’s the system we all have to work with in the future. RK: I don’t think brokers are going through their verification on new introducers. MR: Especially when all of a sudden a new introducer is giving you a lot of business. You do have to ask yourself why all of a sudden this introducer has stopped using his other brokers. Jo Porter: I don’t think that the difference between the types of business that are being introduced is being made clear by the FSA. As we understand it, if it’s straightforward mortgage business being
introduced then they don’t need to actually appear on the FSA register. Simple agreement between the network, broker and introducer will suffice. If part of the business being introduced is insurance business then that’s where the introducer needs to appear on the FSA register as an introducer only. Why? PB: It’s because there’s an exemption under Article 33 which exempts the introducer. DG: I couldn’t give you the rationale that was taken at the time but when you look at what the rules should be around mortgages, general insurance and investments. We look at the directives in place, the cost-benefits of the various changes, the risks that are actually posed by each area. Obviously there is a cost for getting every introducer on to the website and then you have to start thinking about how many introducers can you have? It’s not as straightforward as it sounds and you may have to be careful for what you wish for to some degree.
do lenders check where a case comes from If It’s been Introduced to a broker or Is It Incumbent upon the IntroducIng broker? DM: A lot of times you tend to find they’ll only dig if they think there’s something wrong and then they’ll follow the chain through to the introducer and valuer and build up the spider’s web. That’s only if there’s a suspicion that’s been built up after a number of applications. PB: I’m not aware of any lender’s application systems which ask you for the name of the introducer. RB: It’s the horrible feeling that when you’re putting the fourth one through and you think something is wrong but the
Catch-up with the news @mortgagechat 38 mortgage introducer JANUARY 2012
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