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Regulator didn’t listen to self-cert warnings

Mortgage experts have attacked the FSA for failing to heed warnings on self-cert and other risky mortgage products from as early as 2002.

Speaking at this year’s FSA Mortgage Sector Conference, experts slammed the FSA for not listening to their warnings over products such as self-cert and buy to let.

Small Business Practitioners Panel mortgage representative Stephen Atkins said: “Over the last few years, the panel was made aware of a market with more emphasis on self-cert and sub-prime and we did see a less responsible attitude to affordability back then.

“We were talking to the FSA about this market back then because the panel was concerned that the FSA should monitor what was going on – whether it did or not I do not know but there were problems, especially with self-cert.”

Financial Services Consumer Panel personal finance representative Nick Lord said the panel too was concerned about certain mortgage products as far back as 2002. He said: “It was clear that people in the industry knew self-cert could be a toxic product but the industry did not want to do anything about it because this would lead to a drop in business.”

FSA managing director of retail markets Jon Pain said the regulator did not want to “fight yesterday’s wars”. He said: “Now is the time to think about how the marketplace has performed and build a framework round that.”

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