New sales and MPPI guides will help intermediaries meet TCF March 2007 deadline

TCF Info (www.tcfinfo.co.uk), the website dedicated to supporting mortgage intermediaries in treating customers fairly, has launched a raft of new content to help brokers embed TCF into their sales process ahead of the March 2007 deadline for ‘implementation’ of TCF.

The new guides, which follow TCF Info’s plain English ‘checklist’ format, cover general sales procedures, Self Certification mortgages and Mortgage Payment Protection Insurance (MPPI). All are freely available for downloading and adapting for in-house business use or training purposes.

‘Sales & Advice Tips and Tools’ offers practical TCF guidance at point of sale

TCF Info’s new Sales & Advice Tips and Tools section is shaped in response to the FSA’s latest findings on TCF weaknesses in this area - especially in relation to disclosure, suitability of advice and record keeping. It includes:

Sales process tips – how to embed TCF into everyday sales process, supported by download leaflets and checklists
TCF customer statement – example wording promoting TCF to end customers, ready for own-branding
Record keeping checklist – an ‘at a glance’ list of the records that must be kept

during the sales process

IDD & KFI content checklist – an overview of the most common mistakes identified by the FSA when reviewing disclosure documents
Fact Find checklist - to help brokers review and plug gaps in the information gathering process which may compromise TCF
Product suitability checklist – a handy guide for adaptation and use by sales consultants to record why they recommend a particular product

MPPI & Self Certification Case Studies offer practical solutions to protect customer interests

TCF Info’s latest MPPI Case Study and Self Certification Case Study offer contextual examples of poor sales practice in these areas, coupled with suggested ‘best practice’ solutions. MPPI and Self Certification mortgage sales have both been highlighted as areas of serious concern by the FSA in recent months, with one mortgage firm receiving a £455,000 fine for mis-selling of MPPI.

Frank Eve, Managing Director of Frank Eve Consulting Ltd, which manages the TCF Info website, said: “Point of sale in the mortgage industry and its impact on TCF has come under close scrutiny by the FSA. The supporting lenders of TCF Info recognise the importance of helping their distributors sell customers products that are right for them and that they can understand and afford. Our latest checklists, sample questions and case studies offer intermediaries the tools to help them do this. They will be of particular use to smaller brokers who don’t have the luxury of compliance and marketing department back-up and may need particular help in the run-up to the March 2007 deadline.”

Chris Sanders, Managing Director of Money Partners, a founder member of the TCF Info forum added: “It’s in everyone’s interests that customers are sold mortgages and associated products that they can afford and which are suitable for their needs. Best practice in mortgage sales means a happier customer, reduced fall out rates (and therefore reduced commission clawbacks) and greater customer loyalty for intermediaries and lenders alike. This has to be good news for everyone.”

Eve points that, as with all TCF Info guides, the latest content isn’t offered as a substitute for FSA rules and principles, but rather a supporting tool. Deep links to the FSA are provided and intermediaries are encouraged to check the detailed guidance if they are at all unsure of their obligations.

TCF Info plans for 2007

The TCF Info website will be further developed 2007 following broker market research. Reaction to the site since launch has been extremely positive with registering brokers applauding its easy navigation and no-nonsense guidance. The site is supported by the following mortgage lenders:

Money Partners
Future Mortgages
Platform
Southern Pacific Mortgage (SPML)
GE Money Home Lending
Rooftop Mortgages
Freedom Lending
Preferred Mortgages