My recent articles have been on future Secured Loan compliance and what businesses might need to do. Suffice to say, if you have your interim permissions and plan to document loan sales in a similar manner to mortgages, you should generally be in the right place.
90% of intermediaries would welcome the opportunity to improve their understanding of secured loans ahead of the sector’s regulation by the FCA, a survey by Promise Solutions has revealed.
Many intermediaries still have a negative view of secured, or second charge loans, probably based on how the market operated 5-to-10 years ago. However, major growth is projected for 2014 and many mortgage intermediaries are already seeing considerable income from secured loans and have learned to do so without any impact on their core business whatsoever.
Secured Loans – Too busy, can not understand them? Don’t Panic! There’s a reason and an option for every broker
If secured loans are an alien subject, it is easy to pigeonhole the whole secured market into one simple “I don’t do that stuff”. The fact is however, they span the whole market, from prime rates of 5.45%, all the way to heavy adverse products with many useful niche’s along the way.
With the secured loans sector set for a shift in regulation this spring one would hope those in the industry will be spending the next few months getting their houses in order. MMR has been an undoubted distraction and Networks in particular seem to have some way to go to be able to say they are fully switched on to secured loans. Worryingly, I do not believe they are all doing enough to change that.
The regulation of the secured loans market is something that has been on the cards for some time. Back in 2006, the Association of Finance Brokers was formed due to such regulations coming.