IMLA warns FSA plans are a ‘step into the abyss’
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Peter Williams, executive chairman of the Intermediary Mortgage Lenders Association, says the Financial Services Authority has taken regulation into uncharted territory,
He says: “While nobody would pretend that the mortgage market is perfect and that there aren’t aspects that need addressing, the FSA has taken regulation into uncharted territory, with unknown consequences for the shape and effectiveness of the UK mortgage market.”
He says by its own admission the FSA agrees its proposals will impact upon the accessibility and cost of mortgages, though it cannot be specific.
He adds: “The question we have to ask is whether the FSA has gone too far, or at least not done enough to understand the impact of its proposals before airing them?
“Moreover, it has done nothing to address the big question today regarding the lack of mortgage finance; the market it plans to bequeath to us seems some considerable distance from meeting the requirements of an ‘age of aspiration’, as set out recently by the Housing Minister Grant Shapps.”
He adds: “The FSA has asked for comments over the next few months and I expect considerable pushback from the industry. Later this year we have a further paper on distribution and advice and then an EU paper on responsible lending. By 2012 the UK mortgage market could be unrecognisable and with unknown consequences. This really is a step into the abyss.”
