News Review


Time for strength and unity for advisers by


Robert Sinclair, director,


Association of Mortgage Intermediaries


An independent Association of Mortgage Intermediaries has been born from a posi- tion of strength. It has an established and experienced management team, a strong Board who are committed to the industry and a series of supporting groups who come together to assist on debating the real issues fac- ing the industry. This will allow us to further develop a strong voice, as long as all firms see it as part of their responsibility to pay their fair share in representing their interests to those who matter. AMI is the interme- diary’s only voice, so needs your membership and sup- port.


Economy Also still needing support is the UK economy which is now seeing inflation com- ing back towards


target


levels, although 2% is still some distance away. Wage inflation remains weak, with


lower City bonuses, whilst retail sales look better at the same time as unemployment is soaring. Our currency remains stable and whilst there are noises from the ratings agencies about our sovereign debt, this seems more a reminder to govern- ment of the need to stick to the path of austerity and not relax the harsh medicine. Our ability to fund our debt cheaply is the key to a less painful outcome, so this is a necessity, despite what will come from Labour who sees dismissing this as easy votes.


Europe As the Mortgage Market Re- view wends its way through its latest consultation, the European Mortgage Direc- tive looks like it is being de- layed. With key votes being pushed backwards, a lack of international consensus, and no Presidency seeing it as a “star” to be delivered, then we may not see any fi- nal approval this year. This is one of many initiatives be- ing considered by the vari- ous committees, but which ranks behind others as be- ing seen as critical in avoid- ing another financial crisis.


Europe at least acknowledg- es that whilst it is important that mortgages are sold and bought responsibly,


other


factors brought the Western World to the brink.


Criteria The latest MMR propos- als have coincided with many lenders again review- ing their criteria. I have no doubt we will see tighter scrutiny of lending into retirement from all mar- ket participants. The area of most concern however is interest-only. Whilst un- derstanding our regulators need for an improved approach, the cautious in- tervention being seen for new lending in the MMR is perhaps not being reflected in the words and actions coming from the supervision and the prudential teams at the FSA. I am concerned that the steps that lend- ers are feeling that they are having to take to be “pro- tected” and “safe” in this world, where their actions are more “accountable”, risks damaging the market and consumers. We need carefully considered market change.


Claims Finally, an increasing aggra- vation for many good firms are speculative requests for information from claims management firms or un- founded complaints from them on products never sold, which could amount to little more than fraud. It has been my hope that there might be some good firms in this in- dustry who would work to clean it up, but this is look- ing unlikely. The lure of easy money for doing something of no value appears too at- tractive. With effective complaints procedures and a robust Om- budsman scheme the mort- gage industry is well placed. Legitimate issues are well dealt with. As a trade body I have no desire to take on this battle, as there are other more pressing priorities. However that may not always be the case. The world of claims management should be on notice. If this does become a priority, it will be addressed robustly. Perhaps the claims management trade bodies should try to achieve some control before the finance industry turns from repairing itself to an external battle.


FOR INTERMEDIARY USE ONLY


t 0333 321 1000 w aldermore-mortgages.co.uk


www.mortgageintroducer.com


MORTGAGE INTRODUCER MARCH 2012 7


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