MMR: Don't blame non-banks for crisis, IMLA tells FSA
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The Intermediary Mortgage Lenders Association has criticised the Financial Service Authority’s Mortgage Market Review for heaping blame on non-banks and non-income verified lending.
Peter Williams, executive director at IMLA, says that while the regulator admits its disclosure regime is seriously flawed, the FSA is also looking to specialist lenders and non-income verified lending as the root of the crisis.
He says: “This is too simple an argument.
“Non-banks weren’t the dominant lenders in the markets in which they operated and non-income verification lending was underpinned by credit scoring systems.
“Non-banks play an important role in the UK mortgage market and a regulatory environment which makes it difficult for them to compete will only be detrimental for consumers and for innovation in the marketplace.”
Williams adds: “We now need an honest and open debate without sacred cows.
“The paper provides a basis for that but we need to see joined-up thinking across the FSA as well as the industry.
“Both the regulators and the regulated have been shown to be flawed.
“IMLA looks forward to working with the FSA on unpacking some of the arguments and developing a sustainable regime for the future.”
