The MMR paper on responsible lending has rightly been criticised for attempting too much minutiae.
Parts of it made little or no sense at all. Mortgage brokers have long warned that the government should realise that the outcome of MMR as laid out in responsible lending paper would be to stop sensible clients getting mortgages.
In this case Grant Shapps has realised that he himself would have been unable to obtain his current mortgage if the MMR came about.
To be fair to the regulator, its MMR paper on distribution and disclosure is far better thought out and has not fallen into the same traps as its predecessor.
Let’s hope common sense prevails as we move forward. With a government minister saying stuff like this I am sure the FSA will sit up and listen – this is not just the industry saying that it is going too far, it is now branching out far wider than that.