Unfair regulations for mortgage market?
- 17th November 2009
- Buying Property News
FSA accused of inhibiting decent borrowers and treating mortgage lenders as 'drug dealers at the school gates'.
Matthew Wyles, Chairman of the Council of Mortgage Lenders (CML) argues that lenders are becoming subject to unfair, politically-influenced regulations.
He commented: “I have a sneaking suspicion that it’s the way that regulators see consumers – as wanton children who have a tendency to want what isn’t necessarily good for them, and for whom Nanny knows best.
“Increasingly, I also have the feeling that regulators see lenders and intermediaries as the sweetshop owners – or worse, the drug-dealers at the school gates – of the mortgage market, enticing innocent consumers in and then getting them hooked, for their own evil profit-driven purposes.”
Speaking at the CML conference, he stated how decent borrowers are being excluded from the mortgage market, and rushed regulations by the FSA could have negative long-term effects.
"For borrowers already in the mortgage market, who may be paying their mortgages perfectly well but whose combined risk factors look high, the ability to get a new mortgage will be significantly reduced in the future," Wyles continues.
"There will be a group of existing borrowers who will be prevented from taking out a new mortgage with a different lender, or possibly even with their existing lender, in the future.
"The FSA doesn’t seem to mind if these people drop out of the mortgage market.
"Building societies, in particular, face a future of oppressive regulation compared with other lenders.
"It’s another example of well-intentioned regulation bringing potentially detrimental side-effects, and there is a big need for the FSA to ensure that the level playing field is truly level for all lenders in the future.
"We hope the FSA will pause for thought, and again not rush in to rules that could have serious unintended consequences."
The ability to get a new mortgage will be significantly reduced in the future.
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