Brokers voiced a number of concerns about how they will be expected to operate their businesses post-MMR during a heated discussion at the Mortgage Business Expo.
During a debate on the Mortgage Market Review (MMR), held at the Expo yesterday (10 November), Stephen Smith, director of housing and external affairs at Legal & General, warned that brokers may have to talk to customers about complex issues such as cost of funds, lender margins and swap markets in order to explain the costs and fees involved in the mortgage transaction.
Brokers expressed concerns that this would confuse clients and make the mortgage process more difficult. Pat Bunton, director of London & Country Mortgages, also speaking at the seminar, said if it becomes obligatory for intermediaries to explain mortgage pricing and interest rate fluctuations, the FSA must road test these requirements first.
One broker attending the seminar conveyed his anger about the costs of regulation and questioned how brokers can survive with increasing costs to meet. “We’re being asked to increase our overheads
