Secured loan master broker Clever Lending has claimed there is a widespread lack of awareness and readiness for the incoming regulatory changes in March 2016.
Brokers surveyed by telephone were asked if they were aware of the new regulations – 55% said ‘No’, which the master broker said indicates a need for even more communication across the industry about the Mortgage Credit Directive (MCD).
When asked if they had started to prepare for the changes, 71% said ‘No’, suggesting that with just seven months to go to the new regulation deadline, there is still a lot of work to be done in the broker market for them to be ready and knowledgeable for their clients.
Sonny Gosai (pictured), sales and operations manager at Clever Lending, said: “The survey results confirm what we have feared all along, that with the clock ticking it’s even more essential that the secured loans sector needs to provide the education and training required to deliver MCD through the broker network.
“Clever Lending’s own plans are well ahead of schedule in terms of systems and implementing the new administration. We’re also in close contact with our lending partners so we can co-ordinate our communications going forward.
“We also have to remember the end user in this scenario, the customer, and provide assistance for brokers to make them fully aware of the new requirements as they apply for loans early in 2016. Handling pipeline cases will be key in this and very clear messages will need to be produced across the industry.”