Recommendations that the government guarantee mortgage-backed securities, suggestions that net mortgage lending will fall into sub-zero territory next year and predictions that brokers will all but disappear from the market have the industry up in arms.
Commissioned in April 2008, the report was finally published as part of a radical pre-Budget report in which chancellor Alistair Darling announced a 2.5% cut to VAT, deferred taxes for small business and increased spending on schools, hospitals and roads to create jobs.
He also created a panel of mortgage lenders and trade bodies to review the market and monitor banks’ lending levels and practices.
The mortgage industry seems pleased with the fact that Sir James has pushed for government intervention but many feel it’s too little too late. The government still has to chase the European Union for approval of the plans in advance of next year’s Budget.
So we asked leading industry figures what they think about the proposals in the Crosby report.