The Intermediary Mortgage Lenders Association (IMLA) and the Association of Mortgage Intermediaries (AMI) have published a joint framework for the governance of lender and intermediary relationships under the new mortgage rules that are now in place following the final implementation of the Mortgage Market Review (MMR) on 26 April.
The framework focuses on shared principles to drive the processes used by lenders in working with their intermediary partners. The aim is to ensure a fair approach to matters including panel suspension or removal so that governance processes are fair, transparent and subject to the appropriate right of appeal.
IMLA and AMI have published the joint statement of good practice to reflect what is currently done within the industry, in order to guide all firms where necessary and ensure mutual understanding, so both lenders and intermediaries can focus on delivering high quality lending and good consumer outcomes.
Peter Williams, Executive Director at IMLA, commented, “The intermediary channel is at the core of the UK mortgage market. Our shared aim is to help lenders and intermediaries think about how best to manage their relationships around the difficult area of panel suspension or removal.
Each lender will differ in the detail of its approach, but the same principles apply across the board. The aim of providing clarity within this general framework is to ensure lenders have processes in place which are as fair and transparent as they can be.”
Robert Sinclair, AMI Chief Executive, commented, “We appreciate the work that has gone into this by our lender colleagues. We are already aware that in negotiating this document, a number of lenders have introduced changes to their procedures. We know that others will complete their reviews shortly. This partnership approach to change is what will continue to make intermediary distribution of mortgages the natural choice of the future.”