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We are not crying wolf, says CML

Matthew Wyles, chairman of the Council of Mortgage Lenders, says the trade body is not crying wolf in its opposition to the Financial Services Authority’s Mortgage Market Review.

In his opening speech at the CML’s conference this morning, Wyles, who is also group distribution director at Nationwide Building Society, told delegates that it is not over egging the potential effects of the MMR’s proposals.

He says: “As the CML has said on many occasions now, it isn’t the fact that conduct business rules are being reformed that concerns us. It’s the layer upon layer of additional requirements that is making the great overall regulatory edifice too big and unwieldy.

“I’m sure the FSA doesn’t mean to exclude great crowds of borrowers from the market, or reduce the reasonable borrowing capacity of responsible households to meet their housing needs.

“And I’m sure the FSA genuinely believes that we are over egging these potential effects. But I can confidently assert that we are not crying wolf.”

He says the CML wants to get the balance right for lenders, brokers and consumers.

Wyles says the industry is likely to have done around £137bn in gross lending and £9bn in net lending by the end of 2010. Only 160,000 first-time buyers were provided mortgages over the period and he adds that capital and liquidity requirements were already driving lenders to adopt risk averse strategies.

He says despite Lord Turner’s call for a public debate on the FSA’s proposals nobody has yet to step forward.

He says: “The CML has been one of the few bodies really prepared to put its money where its mouth is and engage in that debate.”

He says the housing minister and the financial secretary were both invited to the CML conference today but both declined.

Wyles says the industry is no longer on the brink of a financial abyss, but in other ways it feels like too little has changed since the CML conference this time last year.

He says: “Today feels like Groundhog day.”

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  • Michael White 18th November 2010 at 5:33 pm

    Dear Mr or Ms Anonymous,

    I would be interested to understand from you as the expert who clearly ‘knows about mortgages’ precisely which CML claims are “ridiculous” and why?

    Making such sweeping statements and hiding behind the anonymous post always intrigues as invariably it is the rant of someone who is far from expert?

    However, I await your elucidation on this matter and of course stand to be corrected…

  • Keith 18th November 2010 at 11:48 am

    Yes Matthew it is “groundhog day” again.The CML again having to deny that it’s crying wolf – isn’t it time that they realised that they lost public support long ago and they’re now losing the support of the rest of the industry.

    I’m not surprised the Housing Minister and the Financial Secretary both declined they’re invitations. The CML are becoming a laughing stock with they’re ridiculous claims that anyone who knows anything about mortgages can see through.

    By having to fiddle their figures by so much it just suggests that they don’t have any valid points to make. We need the MMR to implemented successfully as soon as possible if we’re going to have any chance of avoiding the more onerous European regulations that are coming down the line.

    Stop opposing change and start being realistic.

  • Toddy 18th November 2010 at 10:35 am

    Housing minister and financial secretary declined their invitation. That is outragous at best and negligent at worst. Havs not the Government very recently proposed new rules on how MPs can be ‘de-elected’?

    I think these two would be near the top of my list, if I lived in their area.