Since 31 December 2002 mortgage brokers have only been able to advise consumers on mortgages if they sat and passed one of two mortgage examinations.
The Mortgage Code Compliance Board is a voluntary regulator for the mortgage industry and made the exams compulsory. Membership with them is renewed annually by both mortgage lenders and mortgage brokers. The annual renewal for registrations is currently in full swing but the MCCB have been criticised about their processes.
Apparently, although advisers must be qualified to advise on mortgages, the MCCB have not asked for proof of exam passes. This could open the route for unscrupulous mortgage advisers to practice without passing.
Brad Baker, head of communications for the MCCB said, “We are here to register firms, not individuals. We do ask for the number of qualified individuals but it is not a requirement to send in the qualifications”.
Tip
When seeking mortgage advice check if your adviser is qualified. It may be difficult to prove without seeing his or her certificate but they should tell you that they have passed either the CeMAP or MAQ exams. These stand for Certificate in Mortgage Advice and Practice and Mortgage Advice Qualification.
Learn more about mortgages in Mortgage Crazy.com.
Take a look at our feature on Adviser Qualifications.