MP hits out at FSA’s reign of fear on mortgages
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Labour MP George Mudie has hit out at what he describes as the Financial Services Authority’s reign of fear on mortgages.
Hearing evidence at a Treasury Select Committee meeting today on financial regulation, Mudie questioned Mark Hoban, financial secretary to the Treasury about whether the FSA or the newly created regulatory body should be independent from the government.
Mudie says: “The full horror of the Financial Services Authority’s reign of fear on mortgages has not yet percolated and people do not understand why mortgages are so scarce.
“It is very difficult to get a mortgage without a very big deposit if you are a first-time buyer and if you are self-employed, the phrase seems to be hard luck.”
He asked whether at a time when the construction industry is reliant on the mortgage industry whether it is wise to have a regulator that is not more answerable to parliament.
Mudie adds: “The last word seems to be with the regulator, is there nobody in the Treasury or the government that is uncomfortable about that?”
Hoban says the regulator does respect the opinions of parliament and the Treasury Select Committee, but says there is a risk that its independence and authority could be undermined if they are being politicised.
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Readers' comments (8)
Paul | 30 Nov 2010 1:49 pm
why is everyone scapegoating the FSA? Everyone surely knows the real reason that banks aren't lending is because htey are afraid of the cash crunch coming when they repay the SLS and roll over maturing paper. Read all about it here http://www.telegraph.co.uk/finance/comment/jeremy-warner/8118430/Markets-alert-for-credit-crunch-2.0.html
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Steve | 30 Nov 2010 2:47 pm
Perhaps so, but it is the FSA preventing squeaky clean, well informed, self employed applicants from releasing equity from their homes unless then can prove their income. there are plenty of other similar examples. If we want a society where nobody takes responsibility for their own actions,the FSA is doing it's bit to get us there sooner. The FSA has been a major contributer to the claims society we see today and try's to treat every consumer as being thick and every lender/advisor/broker as guilty until proven innocent. Replace the FSA with independant legal advise for all non prime secured borrowings. Job done
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Gordon Smith | 30 Nov 2010 2:49 pm
MP's jobs are fragile things,prone sometimes to being lost when governments fall,making sure some politicians have to be thinking of the future.
A job in financial regulations is more lucrative,and for life,to these unelected powerfull quangos.They are also paid more in these quangos than your normal minister.
Casting no asspursions,but defending the FSA,and maybe working there in a few years time,or its new named follower,worry free from being unelected,on a much bigger salary.............need I say more?
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Anonymous | 30 Nov 2010 2:51 pm
Isn't it funny that now the FSA is on a deadline to closure it is being looked at close enough by the powers that be to see it's failings.
Let's hope that they learn from these findings when empowering the FSA's replacement.
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Anonymous | 30 Nov 2010 3:35 pm
Paul - thanks for the link, interesting read.
For the optimists out there this will be seen as negative scaremongering.
For those that are realists and have been reading articles like the one by Jeremy Warner for the last 6 months, this isn't unexpected.
Get out while you still can.
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Anonymous | 1 Dec 2010 7:38 am
What is an asspursion? and how do you cast one?
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John smith | 1 Dec 2010 11:18 am
I work in the industry and i use the words loosely..and the FSA are a nightmare. Theyve regulated everything beyond reason and someone who has had a CCJ 5 years ago can be barred from working. They have forced a burden of regulation on the industry that people thinking of joining should really think twice about the career.
Yearly exams and mountains of paperwork and licencing just to stand still...thats before youve tried earning a living. I hate it but at my age im stuck with it. Roll on retirement.
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Luke Atkinson | 1 Dec 2010 12:43 pm
Anon - 7.37am.
An asspursion - noun. A type of cat crossed with a donkey with long hair, short thick legs and a round face.
To cast one you need a very strong rod and some wire rob on a reel.
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