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The FSA’s current position on the issue of dual-pricing in the mortgage market fails to recognise the role and value of advice for consumers, according to the Association of Mortgage Intermediaries (AMI).
AMI further criticised the FSA for not considering the wider ramifications of suggesting mortgage intermediaries should send their clients directly to lenders.
Following Jonathan Fischel’s speech at the Mortgage Expo in Manchester, Chris Cummings, director general of AMI, says: “We are very concerned about the content of Mr Fischel's 'Mortgage Update' speech delivered at Mortgage Business Expo.
“In the speech he implied that the FSA were introducing new disclosure requirements solely for independent mortgage intermediaries in the midst of what can only be described as turbulent market conditions. It was left unsaid how tied salespeople would have to respond to Mr Fischel's speech.”
Cummings says the FSA’s idea that brokers can inform clients that a direct deal might be more competitive fails to recognise the service provided by a mortgage intermediary.
AMI says that more than 60% of consumers are thought to be seeking advice on regulated mortgage business, a sign that they value advice.
AMI has called on the FSA and lenders themselves to put mortgage borrowers first and says it will continue to work closely with the regulator to resolve the issue.
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