The Treasury is planning a consultation on Professor David Miles' recommendations for the mortgage market.
Speaking at the CML's annual lunch, Treasury Financial Secretary Ruth Kelly said she fully endorsed Miles' conclusion that the mortgage market needed urgent reform.
Industry bodies initially criticised Chancellor Gordon Brown for skimming over Miles' review in the Budget, but Kelly's ann-ouncement will go some way towards appeasing groups that feared the proposals would be sidelined.
The Treasury is believed to be focusing on Miles' recommendations on financial disclosure. Any move to introduce legislation in this area could tie in with the publication of the FSA's financial capability steering group's recommendations, which are due out in May.
Miles' report makes recommendations which fall into two groups. First, those aimed at improving the advice and information given to borrowers and a more transparent pricing structure and, second, helping lenders fund mortgages and handle risk.
Kelly said: “The Government and the FSA are currently considering Professor Miles' recommendations. The Government will consult on them in due course.”
Cicero Consulting director Iain Anderson says: “I think the fact that the Government wants to push ahead with Miles is certainly interesting, but I think that the focus will be purely on the disclosure element, rather than long-term products.”