CML helping lenders to meet FSA expectations on arrears handling

Responding to today's letter from the FSA to mortgage lenders and administrators requiring them to review and report back on their arrears management by 31 January, the Council of Mortgage Lenders points out that lenders are already undertaking the critical assessments that the FSA expects, using the CML industry guidance published last month.

The FSA's earlier thematic work also said: "Mainstream lenders were largely complying with FSA requirements and have policies and practices that should ensure that customers are generally treated fairly". However, the CML and lenders share the FSA's concerns to ensure that not only policies, but also practices "on the ground", treat customers fairly and avoid repossession wherever an alternative solution can be found.

CML director general Michael Coogan commented:

"Lenders understand that in the current difficult economic environment there is bound to be a high level of scrutiny of their handling of mortgage arrears. Borrowers facing difficulty deserve to know that their lenders have the right measures in place to treat them fairly and try to help them keep their homes wherever this is an achievable outcome. That is why we and our members have been working on a voluntary basis to the same goals as the FSA in this important area."