What is a Mortgage Introducer
A mortgage introducer is a person, company or other organisation that advises people about mortgages as part of their customary business practices. The mortgage introducer's main function is to introduce individuals to financial institutions in order to arrange mortgages. Since the Financial Services Authority (FSA) took on the responsibility for regulating mortgage lending, in 2004, reputable mortgage introducers almost always register with the FSA. Mortgage brokers, independent financial advisers, accountants, solicitors and other financial services' professionals may all act as mortgage introducers.
Mortgage Introducer Rules
The role of the mortgage introducer is strictly defined. In carrying out the job function, a mortgage introducer:
is allowed to pass on the client's name, address and other contact details to an authorised firm after receiving written permission from the client; is allowed to receive a fee from an authorised firm; must inform the client if any fee is to be received for making the introduction; must inform the client if any other reward (e.g. use of office facilities) is to be accepted for making the introduction; must inform the client if the authorised firm is part of the same group of companies as the mortgage introducer; must collect only the minimum of information required from the client in order to facilitate introduction to an authorised firm; must not handle money from the client (e.g. valuation fees, administration fees, etc.); must write up and retain details of discussions with the client.
Mortgage Introducer Communication with Lenders
A mortgage introducer may deal with a single mortgage provider or with many different providers, depending on their circumstances and business practices.
Some of the larger mortgage lenders have set up dedicated websites to handle communication with mortgage introducers. Once a mortgage introducer has registered on the website they can: instantly find out details of the mortgage provider's products (including special deals), mortgage lending criteria and gain access to a mortgage repayment calculator; enter client details online to obtain agreement in principle (AIP) decisions within seconds; submit mortgage applications online for clients; track the progress of mortgage applications online.
Summary Mortgage introducers find prospective borrowers for mortgage providers; a wide range of financial services professionals act as mortgage introducers; some lenders use dedicated websites to communicate with mortgage introducers.
For More information see:
FSA – Do I Need To Be Authorised
FSA – Becoming An Appointed Representative
FSA – Regulated Activities Related To Mortgages
