View more on these topics

CML accused of deflecting blame away from members

The Council of Mortgage Lenders has been criticised for appearing to absolve its own members of blame when it hit out at irresponsible mortgage lending practices.

At last week’s FSA mortgage sector conference, CML head of policy Jackie Bennett read a speech from director general Michael Coogan which said: “It is clear that a few lenders acted irresponsibly in their pricing, with a relaxation of credit standards or overreliance on the securitisation market.

“Those lenders are largely out of business as a result of their ill-judged commercial stance.”

But FSA chairman Lord Turner highlighted in his speech the fact that, of the 34 per cent of mortgages that the Bank of England classified as “specialist” last year, about half were lent by non-bank lenders such as GMAC and GE Money while the other half was lent by subsidiaries of high-street names such as HBOS, Nationwide, Abbey, Alliance & Leicester and many others .

Homefunding chief executive Tony Ward and Exact managing director Alan Cleary say lenders are deflecting blame away from themselves.

Ward argues that non-bank lending last year was even less than Lord Turner suggested.

Ward says: “Non-bank lenders had around £35bn of turnover in 2008, 10 per cent of overall lending, which is lower than Lord Turner’s estimate. Therefore, it is unfair that the non-bank sector has been labelled as a disproportionately risky sector. Non-banks have not received any Government bailouts and have not asked for any Government help.”

Exact managing director Alan Cleary says: “Most of the lenders of those specialist mortgages are still around as the vast bulk of specialist lending was done by balance-sheet lenders.

“This is a classic example of blaming someone else and blame will not get these problems solved. I do not concur with this ‘specialist lenders are to blame’ stance.”


Manager focus: Peter G᤬

The first investments of a fund are crucial for long-term performance, says Peter G᤬, the manager of the newly launched Nucleus Assurance fund 1. G᤬ says that there is no shortage of opportunities in the European insurance sector as liquidity is still limited. The asset manager says the Luxembourg-domiciled Sicav is designed to benefit from […]

Shape shifting

While out the other evening with some of the good, good people of Lazard Asset Management, a fund manager told me that he was no long feeling as optimistic about the outlook for the global economy as he had been.

Testing the Foundation

The global economy isn’t headed into recession, at least not yet. This month, David Lafferty, Chief Market Strategist at Natixis Global Asset Management, examines current capital market and portfolio risks for signs of recession. Click Here for Capital Market Notes


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm