In his report today, Turner says as well as looking at whether the FSA should regulate products and put a cap on LTVs, it will also look at the wider mortgage market.
He says: “The paper will also consider whether more effective regulation of the mortgage market, through either tighter conduct rules or direct product regulation, would require the extension of the FSAs remit to cover second charge mortgages and buy-to-let mortgages.”
The Association of Finance Brokers has long been calling for second charge mortgages to fall under the FSA’s remit.
The AFB published a White Paper and member consultation on the future of regulation for secured lending in September 2008. The results from this consultation showed overwhelming member support for regulation of second charge lending by FSA.
It wants to see the Office of Fair Trading’s latest proposed guidance on second charge mortgages to be replicated within the Mortgage Conduct of Business regime with the FSA.