The Association of Mortgage Intermediaries (AMI) has called for the Financial Conduct Authority (FCA) to crack down on weaker MCD disclosure rules for lenders in a bid to re-level the play field for advisers.
In its latest economic bulletin, AMI has outlined how, following the implementation of the Mortgage Credit Directive on 21 March 2016, disclosure rules have changed. Banks and building societies have seen the regulatory onus on them to disclose their terms and conditions and payment structures weaken under MCD – upfront they are permitted under European regulation to disclose orally.
The Association said: “Under Mortgage Market Review (MMR) rules they, like intermediaries, had to submit full disclosure to clients before they commenced conversations. AMI is disappointed to see that the FCA has not chosen to require lenders to continue to adopt the same stance as brokers on this point: MMR was designed to level the playing field so that borrowers received a consistent level of service regardless of the path they chose to take when applying for a mortgage.
“We strongly urge the FCA to reconsider this rule and revert back to its much fairer and more robust disclosure rules under MMR.
“This is fairer to consumers on all levels.”