View more on these topics

MMR delay is double-edged sword, says AMI

The Association of Mortgage Intermediaries says the delay to the Mortgage Market Review creates further regulatory uncertainty in the market.

Adair Turner, chairman of the Financial Services Authority, revealed this morning that it will not publish its proposals in July but will instead wait until the autumn.

Robert Sinclair, director of AMI, says whilst the delay will allow us to have more certainty as to the direction of travel in Europe, business decisions continue to be blighted by a lack of regulatory certainty.

He says: “We had heard a softening in tone from the FSA in recent months, but until we have a formal publication firms have no clear guidance on what the regulator might expect. Whilst a robust cost benefit analysis is important, lenders and brokers are keen to move the market forward in a safe and sustainable way.

“This delay must be used to ensure all issues are resolved and that the MMR provides a level playing-field between the UK and other member states and between UK lenders and intermediaries.”

Meanwhile, John Heron, chairman of The Intermediary Mortgage Lenders Association says it welcomes the delay.

He says: “It is vital that the FSA gets such an important document right and that its analysis is of the highest possible standard to enable an informed debate on the issues. This delay presents an opportunity for lenders to work with the FSA to address any concerns it has about the industry and the way in which it operates.

“The great tension here is between consumer protection and consumer choice. There is no great science in being able to achieve the right balance but certainly an extended period for reflection and consultation is more likely to deliver a better outcome. IMLA welcomes this and the opportunity to engage positively with the FSA.”


Countrywide and MAB recruiting advisers for high net worth venture

Countrywide and Mortgage Advice Bureau are to recruit 25 advisers and a sales director to spearhead their new high net worth brokerage. The firms announced last week that they will launch Capital Private Finance on August 1 which will handle all referrals from Countrywide’s premium estate agency brands Hamptons International, John D Wood & Co, […]

Repossessions up 17% in Q1

The number of new repossessions in Q1 2011 increased by 17%, the first rise in a year, according to the Financial Services Authority.

Customer benefits may not be so good for shareholders

The regulator must understand every action it takes has consequences. If a lender lets a borrower off a few payments, or changes the terms of the loan to one that makes it more risky for the lender, that is all fine and dandy for the borrower. But isn’t it ruining shareholder value, a group that […]

Mortgage lenders need to improve fraud systems

The Financial Services Authority will come down hard on lenders which do not use its new report on mortgage fraud to improve their practices, says Tracey McDermott, acting director of enforcement and financial crime at the FSA.

Champion the small-scale developer

Traditional development finance must price in project and liquidity risk, but if your project is completed and you have begun selling units you could be eligible for cheaper funding, writes Matthew Tooth of Lendinvest. A product which prices purely for liquidity risk is one way to help developers lower their costs. This type of product allows […]


News and expert analysis straight to your inbox

Sign up
  • Post a comment
  • Maurice Edgington 23rd June 2011 at 9:12 pm

    Have lenders already put most of the consultation paper proposals in place on a just in case basis though?