ASTL warns of MMR dangers for short-term sector
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The Association of Short Term Lenders is calling on short-term lenders to join together for a co-ordinated and comprehensive response to the Mortgage Market Review.
Adrian Bloomfield, chief executive of the ASTL, says: “The discussion paper sets out proposals on many essential matters including capital adequacy and the entire manner in which short-term loans are sourced, underwritten and handled. There is further emphasis on the FSA’s requirements for treating customers fairly. If all the proposals are introduced without challenge or amendment they could have a most serious and potentially detrimental impact on the specialist short-term and bridging loan sector.”
The astl says it is vital that all of its members and other short-term lenders appreciate that the discussion paper needs to be fully considered and responded to, so that the views and concerns of short-term lenders are heard and taken into account. To this effect the ASTL, which has a dialogue with the FSA, has set up a working party which includes advisers to prepare a response to be submitted to the FSA in January.
Bloomfield adds: “We intend to build on our good relationship with the FSA and to make a detailed submission in response to their discussion paper to ensure that the unique requirements and factors of short-term lending are recognised and, wherever possible, incorporated under any future mortgage regulation regime.”
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