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CML agrees to review code on repossessions following Govt meeting

The Council of Mortgage Lenders and the Finance and Leasing Association have agreed to review their voluntary arrangements on arrears and repossessions following a meeting with the Government at No 11 Downing Street today.

The industry will report back to ministers by the end of May 2008.

The group also agreed to identify improvements in the information on borrowers facing difficulties, including borrowers seeking to refinance to new fixed rate deals. They will also report back on this in May.

The Government has said it will continue to keep under review the effectiveness of the framework for supporting borrowers in difficulty.

Chancellor Alistair Darling says: “The mortgage market is facing challenges as a result of the US sub-prime crisis. The Government is taking coordinated action, internationally on regulation, in the London markets through the action of the Bank of England, and also today with the CML and the FLA, to ensure a fair and well functioning UK mortgage market.

“I welcome the arrangements that the industry has in place, and will continue to build upon, to address the concerns of borrowers in difficulty. I hope that lenders continue to take their responsibilities towards customers seriously.”

CML director general Michael Coogan says: “We welcomed the chance today to discuss the steps that the industry is taking to support borrowers in the market, and look forward to continuing to work closely with the Government over the coming months to ensure that as few borrowers as possible face the threat of repossession.”

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