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FSA hits out at MMR criticism

The FSA has hit out at suggestions it is “steam rolling” through the mortgage market review and says it is taking its time to get things right.

Speaking at a conference organised by Money Marketing’s sister title Mortgage Strategy yesterday, FSA manager of mortgage policy Lynda Blackwell said the regulator is not going to implement policies without listening to the industry.

She said: “We read comments about the FSA ‘steam rolling’ through the MMR and criticism that we appear determined to implement a particular set of regulatory measures irrespective of their impact on the economy and the market, and irrespective of the views of others.

“Well – that’s wrong. We are in the middle of a process which involves engaging stakeholders through consultation papers to assess what changes should be made to improve the effectiveness of the mortgage market.”

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Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. The proof of the pudding will be in the eating. If the FSA can prove that it isn’t steam-rollering through this latest initiative, then it’ll certainly represent a break with tradition.

    May we request some clear evidence that the FSA isn’t steam-rollering through the RDR despite the the all but deafening clamour of dissent from those whose livelihoods it stands to place in jeopardy?

  2. The complainants don’t know when they are onto a good thing. If the MMR proposals go through, the mortgage industry will be getting off lightly. The equity release proposals are particularly lightweight and do not go anywhere near far enough. We submitted our response to FSA, pressing them to tighten up much more, otherwise we risk jeopardising the positive development that our specialist sector has experienced in recent years. Simon Chalk, Later Life Planner, LaterLiving.

  3. I can only speak from a mortgage broker’s point of view.

    Dozens of lenders have already implemented MMR-based criteria and it makes me highly suspicious that the steamroller has already passed by and squashed the rights and hopes of millions.

  4. More and more rules are no substitute for effective supervision, history tells us this is so!

  5. A balance of power away form the monopolising banks would “improve effectiveness of mortgage market” but despite this the FSA has historically taken a a bankers perspective on just about all issues.
    Should a level playing field be created allowing smaller lenders and building societies to compete competition would return to the market. Getting rid of duel pricing, be it for the benefit of banks or brokers would encourage greater transparency also. This is what the FSA should focus on, not draconian rules like no interest only mortgages or fast track facilities. Flexibility and aspirations have a place in the market as well as the publics best interest. The FSA and government in general should stop trying to legislate for life, it is not possible, so supervise and get rid of bad apples.

  6. A steam-roller is pretty slow isn’t it?… but tends to flatten everything in its path… what part of the term “steam-rollering” is being criticised? the speed or the result?

  7. “it is taking its time to get things right” – That WILL be a first!

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