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CML wants no more mortgage regulation this year

The Council of Mortgage Lenders has called on the Financial Services Authority not to implement any more regulatory change in 2010.

In its News and Views, it says that apart from its recently launched consultation on arrears and possessions the FSA should make no further changes to the regulation of mortgages this year. 

It says there is no short term risk if the regulator takes more time to reflect or analyse market data. 

It says: “The current process of structural market adjustment should therefore be allowed to continue – alongside progress towards global prudential reform and improvements in the economic backdrop. 

“A clearer understanding of the real causes of consumer detriment is needed. And before pressing ahead with further changes, the FSA will also need to apply rigorous cost-benefit analysis – informed by market data – to its proposed reforms.”

On the subject of whether lenders should check the income declared by the borrower in every mortgage application.

It sys it is more important that borrowers take out mortgages that are sustainable, and the FSA avoids introducing rules that exclude them unnecessarily from access to mortgages, and therefore to home-ownership.

It also wants to the FSA to draw a clear distinction between fast track and self-cert mortgages.


The cost of regulation could be going up

The building societies lending and savings figures released by the Building Societies Association on Monday show that gross mortgage lending jumped 15% in December, compared with November.


Openwork says exodus was not due to dispute

Martin Davis, chief executive of Openwork, has rejected claims that internal disputes were behind the departure of three of the network’s directors last week. As Mortgage Strategy Online exclusively revealed last Thursday governance director Michael Burne and development director Gerard Moore have left the network. Sales director Andy Ferns is also leaving but will stay […]

Watchdog bares its teeth on arrears management

The Financial Services Authority is proposing to tighten its rules on lenders’ arrears management processes in response to issues flagged up in last year’s Mortgage Market Review. The FSA says its crackdown on arrears handling also reflects its ongoing work in this area, which it says has uncovered high levels of consumer detriment – particularly […]


Radical overhaul of banking sector needed, says King

Mervyn King, governor of the Bank of England, says he would like to see radical reform in the banking sector so that risk is spread more evenly in future. Appearing in front of the parliamentary Treasury Committee last week King told MPs there had to be a big change to the liability structure within the […]


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