Mis-sold Mortgage Claims > Mortgage News
Mortgage Market Review will not help a depressed market
Mon, 09 Aug 2010
The proposals set out as part of the Mortgage Market Review (MMR) by the Financial Services Authority on responsible lending in June, have been widely criticised by the industry. They are referred to as "heavy handed" and if implemented will damage an already depressed mortgage market.

The Council of Mortgage Lenders (CML), The Building Societies Association (BSA), Intermediary Mortgage Lenders Association (IMLA) and the Association of Mortgage Intermediaries (AMI) have all questioned the proposals. These bodies form the foundation of the mortgage lending sector. IMLA and AMI are particularly concerned that the proposals to make income verification mandatory, banning fast-track and self certification mortgages, will affect lender's appetite to support the broker market.

IMLA also believes that proposals to force lenders that do not take retail deposits, or savings, may push some lenders out of the market, this will see less competition and innovation which is much needed to help a recovery. Many industry experts believe that well run firms who have treated customer fairly are being made to pay the price for irresponsible lending practices, in particular during the fight for market share in the specialist lending sector.

As the consultation process continues with the mortgage market review it is hoped that the FSA will listen to those who fully understand its implications, this should lead to stability and sustainable growth which will benefit the consumer.
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