Mortgage Regulation
We continue to contribute to the development of the FSA’s Mortgage Market Review (MMR).
The Panel has been very aware of the difficulties facing mortgage intermediaries in the credit crisis and is particularly concerned by the large number of firms leaving the industry.
We have made a number of suggestions on behalf of smaller businesses, including:
- that ultimate responsibility for assessing affordability should rest with lenders;
- that lenders should be empowered to make commercial decisions in respect of borrowers with “high-risk characteristics”;
- that regulation should only be at a macro-level; concentrating on diversification of portfolios and risk;
- that the FSA should not impose a rigid framework in respect of maximum borrowing limits for consumers;
- that there should not be an outright prohibition on self-certification mortgages, as these products are appropriate in certain circumstances.
If you have ideas or experiences that could contribute constructively to the Panel’s opinions and debates on this topic, please do use the feedback form below.
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