CML annual conference delivers key messages for mortgage industry

Jon Pain will tell today's seventh CML annual conference that gross lending has grown by 25% in two years. Reflecting on his 24 months as chairman, he will outline how the number of lenders and products has grown, while statutory regulation of the industry by the Financial Services Authority (FSA) has successfully bedded in. But recent developments in global wholesale funding markets have had a profound and lasting impact on UK lenders.

Outlining a series of challenges for lenders, intermediaries, the FSA, the Treasury and the Bank of England, Jon Pain will call for action to address three urgent issues:

• A quick and effective resolution of Northern Rock's position to help restore consumer and market confidence.
• A review of how the Bank of England can help re-open the UK's mortgage-backed securities market and support an easing of liquidity in wholesale markets.
• Consultation within the industry on appropriate lessons that need to be learned from recent events.

In his speech, Jon Pain will say:

"Lessons clearly have to be learned by all parties, including those of us managing businesses in the mortgage market, the regulators, the Treasury and the Bank of England. At the same time, we all - as stakeholders in our industry - need to stay focused on the needs of our 11.8 million mortgage customers. It is important in the current storm that we retain a sense of perspective on the underlying strengths of our mortgage market."

In his conference address, CML director general Michael Coogan will outline the benefits lenders have already delivered for consumers but call on both to prepare for challenging times. Lenders need to handle with sensitivity the small number of borrowers falling into arrears. And borrowers coming off fixed-rate deals need to plan ahead for higher mortgage costs.

In his speech, Michael Coogan will say:

"We will carry on representing the industry's interests as effectively as possible, particularly in a heightened media, political and regulatory environment where the risk of over-reaction is real. We will continue to highlight the valuable role the mortgage industry has fulfilled in the UK economy, the strength flowing from the diversity and breadth of size of lenders, and the benefits for consumers that lenders will continue to deliver in the future."