Question:

What is mortgage broker compliance?

Answer:

Mortgage broker compliance refers to the level of expertise a broker possesses. Borrowers often talk to mortgage brokers about financial and mortgage issues. However, for the mortgage broker to be legal to provide professional counseling, they need to be registered with the FSA - Financial Services Authority.

An FSA compliant mortgage broker is accountable to the FSA and has to abide by their rules, hence borrowers entertain certain protection level. An FSA compliant mortgage broker cannot advise you to take an expensive and potentially dangerous mortgage because they want more commission. Rather, compliance with FSA guarantees that borrowers are entitled to receive the best possible loan information plus information of the commission the broker receives.

Mortgage broker lack of compliance with FSA rules may lead to suspension, and even legal prosecution.

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