"The fact that we are now onto the third version of this guide shows that it is standing the test of time as a useful framework for both lenders and intermediaries in working together."
The trade bodies say the updated guide reflects "modest Mortgage Credit Directive changes", and replaces the existing version which was originally published in October 2010, and updated in 2014 to reflect the outcome of the Mortgage Market Review.
The CML added that since it was introduced in 2010, "the guide has provided a valuable framework for both lenders and intermediaries, providing a shared reference point and a clear description of good practice on the relative responsibilities of lenders and intermediaries".
The guidance is aligned with both the FCA Handbook requirements and relevant Treating Customers Fairly guidance. It sets out good market practice and aims to promote high quality working standards, and the achievement of good customer outcomes, through productive collaboration between the lending and intermediary sectors.
Paul Smee, director general at the CML, said: "The fact that we are now onto the third version of this guide shows that it is standing the test of time as a useful framework for both lenders and intermediaries in working together. Good collaboration between lenders and intermediaries, based on clear communication and understanding, is a vital component of ensuring good outcomes for customers."
Robert Sinclair, chief executive of AMI, commented: "In a predominantly intermediated mortgage world with increasing numbers of challengers and new entrants, this document sets out clearly expectations from all parts of the market how we should interact. The document's evolution also allows us to track how the market changes over time and what are the key changes that have occurred. Working together is an important sign-post to all that the mortgage market is a sum of all its parts, and in doing so it is stronger and better for the consumer."
Peter Williams, executive director at IMLA, added: "Most mortgages are sold through intermediaries and it is essential that lenders and intermediaries work together effectively not least to ensure good customer outcomes. This third version of the guide has been updated to reflect current realities and to pick up on evolving practice issues. For new entrants to the market it is a helpful checklist, and for established players it provides a benchmark against which to check current procedures."
