Mortgage industry boosted by clarification on referral fees

Mortgage industry boosted by clarification on referral fees

With the Legal Services Board (LSB) recently announcing that referral fees are being retained the move has been welcomed by Eddie Goldsmith, Senior Partner at Goldsmith Williams.
Referral fees provide a considerable revenue stream to those in the mortgage industry and any restriction of those fees would have been a substantial blow to an already struggling industry.
Commenting on the news, Goldsmith says:
“Referral fees are here to stay, which is great news for the mortgage industry which has experienced some turbulent financial times in recent years.
Goldsmith goes on to say:
“We welcome that the Legal Services Board has accepted that referral fees are a reality of commercial life.  Indeed if the LSB had tried to restrict or prohibit the practice, the likelihood is that it would have continued behind closed doors.”
When the decision was announced by the LSB David Edmonds, Chairman, commented:
“Following this detailed investigation, we are persuaded that the interests of consumers are best served by continuing to permit referral fees, but managing their impact through shining the light of transparency on them”.
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