The advent of Basel Two may mean significant changes to mortgage products and client credit checks, says John Charcol senior technical manager Ray Boulger.With implementation only 18 months away, lenders are preparing systems to incorporate the stringent risk management measures required by the international regime. Boulger believes lenders will have to adopt credit-scoring across the board to fulfil the regulatory requirements. He says capital risk-taking depends on lenders displaying the quality of their loan books and those smaller lenders which tended not to use credit scoring may have to do so. He says as lenders try to balance their portfolios as a result of implementing Basel Two, they may have to contemplate lower LTVs of up to 50 to 60 per cent although this will be compensated by competitive rates. Boulger says: “There will be a difference in lenders’ requirements and it will have an impact on what we can negotiate in terms of exclusive products. For example, I think that without a doubt we are accelerating towards credit-scoring.” CML communications manager Bernard Clarke says: “There will be some changes following Basel Two but some, as we have said, have been overstated.”
Offshoring in the financial services sector is set to double by 2008, says consultancy PricewaterhouseCoopers. The firm’s research, Offshoring in the Financial Ser- vices Industry: Risks and Rewards – shows that 25 per cent of financial services companies outsource between 10 and 20 per cent of their workforce but this is expected to reach 50 […]
Paymentcare is calling for a ban on banks selling payment protection insurance to customers when signing a loan agreement because of concerns over misselling. The call comes in support of the recent appeal by Citizens Advice to the Office of Fair Trading to launch a probe into the multi-billion-pound PPI industry. Paymentcare managing director Shane […]
The Chartered Insurance Institute has finally won chartered status – a very significant step along the road to making advisers into a profession.The bar is set very high.
Nicola York finds that property prices have hit a plateau and we may be about to see serious falls in some areas of the country
The Pensions Regulator (TPR) has issued its first fines to employers for failing to meet their auto-enrolment duties, along with 163 compliance notices giving employers a deadline to take action.
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