Mis-sold Mortgage Claims > Mortgage News
Consumer protection in the mortgage market welcomed by the BSA
Fri, 28 Jan 2011
The recently announced Government package to help protect consumers has been welcomed by the Building Societies Association (BSA) which coincides with the recent discussion paper released by the Financial Services Authority (FSA) as part of the Mortgage Market Review .

Paul Broadhead, head of Mortgage Policy at the BSA, said, "In principle the measures announced by the Government are sensible. Any tightening of the underwriting criteria of first charge mortgages, through rules imposed by the FSA, has the potential to drive customers to other forms of credit, such as second charge mortgages. These loans are often more expensive and are subject to a different regulatory structure."

He added, "Bringing second charges mortgages under the FSA remit will help ensure that there is consistency in regulation and could make it simpler for consumers".

The BSA has also shown its support for the proposed regulation of firms that purchase mortgage books and the expansion of sale and rent back criteria, to prevent further consumer detriment in these areas.

Broadhead concluded, "As we have consistently stated, it remains vital that the FSA assess in detail the cumulative impact of all the proposals to prior to pressing ahead with implementation, particularly to ensure that the revised regulations facilitate the desired outcomes for UK consumers."

There has been a great deal of concern in the mortgage industry over recent months about the way third parties are managing mortgage books on behalf of lenders . There has been a call for tighter controls on how customers are treated when experiencing financial difficulties resulting in mortgage arrears .

The regulation of companies who manage mortgage books will ensure tighter controls in this area as well as increased accountability.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.