FSA protection for mortgages sold to third parties
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The Treasury is proposing to provide additional protection for UK mortgage borrowers whose mortgages have been sold on to third parties.
Plans announced by the Treasury today reveal that borrowers whose mortgages are sold onto third parties will be awarded protection under Financial Services Authority regulations requiring fair treatment of customers.
The government has also backed the expansion of the regulator’s remit to include buy-to-let and second charge mortgages.
Sarah McCarthy-Fry, exchequer secretary, says: “Since the onset of the global financial crisis, the government has worked hard to ensure mortgage borrowers are treated fairly by their banks.
“Our focus has been to do all we can to make sure people can stay in their homes and to limit repossessions as much as possible.
“But we are aware that this crisis has raised issues around the world about the regulation of the mortgage market.
“We are determined to reform the system for the future, to offer both stronger protection for consumers and greater stability in the housing market.”
The government has published a consultation document on the proposed legislation which will close on February 15.
The consultation paper builds on Treasury announcements made in July this year in a paper called Reforming Financial Markets, which contained a series of proposals to reform and strengthen financial regulation.
The government will implement these proposals via the Financial Services Bill currently before parliament.
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Readers' comments (1)
Marmite | 25 Nov 2009 11:28 am
Not a moment too soon but let's hope that this time the regulaltors, government, courts et al will actually abide by the rules they put in place.
Too many times we see the individual losing out in favour of the bigger players despite what protection they seem to be under.
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