Almost 1 in 10 mortgage intermediaries will leave the industry before the new MMR rules come into place later this place, figures from the FCA have revealed.
Eight per cent of firms that submitted a survey for the FCA’s second MMR readiness review will choose to exit, however the FCA said that almost all of the firms – mainly small intermediaries – have written less than 100 mortgages in the past year.
The review also found that 85 per cent of firms were almost ready for the changes and that 90 per cent of those who are not said they will be by the time the new regulations come into place.
Only one per cent of firms have said they will not be ready for the April 26 change but will instead stop mortgage business until they are, quoting commercial reasons such as expanding into niche areas or employing mortgage brokers for the delay.
The response to the survey was up from 68 per cent in May 2013 to 74 per cent at the end of 2013, with a total of 3,660 brokerages and 172 lenders responding out of 5,600 firms contacted.
The most asked questions about MMR were about verbal disclosure and using documentation.