Mis-sold Mortgage Claims > Mortgage News
Mortgage Market Review has MPs debating the FSAs proposals
Wed, 19 Jan 2011
The Mortgage Market Review (MMR) has been debated in the House of Commons with MPs expressing their concerns and arguments against the proposals to Mark Hoban, financial secretary to the Treasury. The FSA released it latest consultation paper in November, this followed others which have caused general concerns within the lending sector and resulted in criteria and lending restrictions being implemented by lenders .

It has been reported that Conservative MP, Robert Syms started the debate arguing that the MMR as currently proposed "will have a disastourous effect on the economy, borrowers and first-time buyers ."

He added, "The market failures that the MMR is designed to address affects only a small number of lenders that were in the market, some of these are no longer active."

His views are shared by many experts within the mortgage industry.

Mark Hoban argued that the MMR is essential to ensure that both consumers and lenders are protected. He pointed out that whilst there is clearly concern about the proposals, there is a lot of misinformation.

Last week saw the FSA defend itself on this point as it argued that the housing market "boom" had not increased home owners but had led to more debt and higher house prices with borrowers finding themselves in financial difficulty. Long term arrears have recently seen a return to 1990 levels.
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