Monday, November 22, 2010

FSA recommends changes to mortgage sales

The Financial Services Authority (FSA) has outlined proposals which focus on enhancing the mortgage sales process, the role of intermediaries and improving disclosure of information for customers.

A key element of the proposals is requiring that those selling mortgages ensure that each one sold is ?appropriate' for the customer's needs and circumstances.

By achieving this, the FSA believes that the role of the mortgage seller will be clarified.

Sheila Nicoll, the FSA's director of conduct policy, commented: "This next step of the Mortgage Market Review recognises the importance of the intermediary and ensuring the quality of every mortgage sale.

"It also indicates how the intermediary and other sales staff fit into our vision of a sustainable mortgage market that works well for consumers."

Meanwhile, figures recently announced by the Council of Mortgage Lenders show that the value of lending to the buy-to-let sector in the last quarter increased by 12 per cent and totalled 26,900 loans .

This figure remains low by historical standards and is similar to levels seen in 2002.?

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