Freedom Finance’s loan sourcing platform The Lending Wizard has revealed its European Mortgage Credit Directive implementation strategy ahead of next year’s deadline…

MCD requirements which come into place in March 2016 will affect first and second charge mortgages.

Freedom Finance’s plan aims to ensure that brokers can adequately inform and protect their customers against any risks when purchasing a property or taking out a secured loan.

Nicola Mooney, Head of Secured, Intermediary & Business Finance at Freedom Finance, stated that more and more brokers were considering secured lending following regulators wanting to create a “one mortgage market”.

“Second charge lenders have been able to apply for mortgage permissions from April so, with less than one year to go, now is the time for brokers to familiarise themselves with secured loans and the regulation surrounding these products,” Nicola said.

“Although there is still time for intermediaries to prepare for the upcoming changes, they should be thinking seriously about getting the right systems and processes ready for 2016.”

The new plan consists of three strategic planning choices: technology, talent and training.

Technology
The use of technology will be a key driver in implementing the new changes. Specialist loan lenders will have to have processes in place in preparation for MCD guidelines. Investment into new systems will also drive competences in other sales and operational areas. Freedom Finance, and The Lending Wizard, has updated its systems and is developing enhancements for its broker loan sourcing tool. The new updates will make sure intermediaries are equipped with all of the information they need to remain compliant and protect their customers in the new regulatory landscape.

Talent
It is vital providers recruit the right talent to guide brokers on the new changes and new options available to them. Lenders have a duty to treat customers fairly and must ensure that staff have the appropriate level of knowledge and competence. Alongside adequate training, qualifications and experience, Freedom Finance’s staff will also have a customer-centric focus, with brokers and consumers being the core of the strategy and business.  

Training
In order to ensure compliance and mitigate any difficult transitions, brokers should look to providers who are prepared. Minimum standards will be applied when providing advice to consumers and all firms must provide extensive training for their staff. All advisers will have to be qualified with a Certificate in Mortgage Advice and Practice (CeMAP) by January 2016. In advance of this, Freedom Finance is putting its specialist staff through training this year.

Freedom Finance’s strategy is set to give accurate, tailored information to intermediaries, as well as helping them to meet all the obligations of the regulators and the end customer.