CML news & views

Issue no. 24 - 8 December 2009

Some differences between US and UK mortgage markets are well-documented. But why have foreclosures in the US been at least four times the rate of UK possessions? We offer an explanation. We also look back to a time when regulation was simple, effective and inexpensive and ask: weren't things better back then?

In this issue

Why is possession so much higher in the US?
Weren't we better off with the Mortgage Code?
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Why is possession so much higher in the US?

The economy has declined more sharply here than in the US. Yet US foreclosure rates are at least four times higher than the number of UK possessions. And the problems in the US are not all in the sub-prime sector. So, has US lending been more risky?

Weren't we better off with the Mortgage Code?

We haven't yet finalised our response to the regulatory review (which will accept the case for change and won't be calling for a return of the Mortgage Code!) But after five years of statutory regulation, we reflect on a time when regulation was simple, effective and inexpensive – and pose a slightly tongue-in-cheek question.