CML doubts FSA changes will improve mortgage market
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The Council of Mortgage Lenders has warned that the raft of regulatory changes underfoot are unlikely to lead to a better mortgage market.
Speaking at the Money Advice Liason Group annual conference today, CML director general Michael Coogan expressed grave doubts over the future of mortgage regulation.
He said the CML has been advocating since 1999 that secured lending should come under the FSA’s remit, but warned that with the FSA’s future hanging in the balance due to Tory plans for the regulator to be scrapped, it was unlikely that this extension to the FSA’s scope would be a priority.
He said it was more likely that we will “continue to limp along with the FSA and the Office of Fair Trading acting in tandem” for some time.
On the Conservative’s plans to replace the FSA with the Consumer Protection Agency, Coogan challenged whether this was a case of “rearrangement of deckchairs”, which could leave consumers facing higher product costs.
He questioned whether regulatory changes in Europe would add another layer of complexity and cost to the market.
He said: “If we are in a period of flux on regulatory rules - and I have not even mentioned the breadth of other proposals in the FSA’s mortgage market review - will we end up with a sustainable and better market for firms and consumers as the FSA hopes.
“I doubt it.”
The CML is also calling for the Chancellor to remove uncertainty over the future of Income Support for Mortgage Interest in his pre-Budget speech.
It says the current standard rate for ISMI support should be extended for another year, and the period over which ISMI will be paid should be extended beyond 13 weeks.
Readers' comments (2)
CML knows best! | 25 Nov 2009 2:05 pm
Well said Mr Coogan! Not the sort of person who would specifically reprimand the FSA, but for a shrewd diplomat, this is as close as it gets.
First Wyles throwing down the gaunlet now Coogan, this is getting very interesting indeed!
The question now is will the FSA listen and is the proverbial penny beginning to drop that policing a market does not make you more expert then the market.....
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J Smith | 25 Nov 2009 3:10 pm
Well the FSA's track record isn't exactly good, so the CML may well be right.
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