CML welcomes extension of regulatory scope
Published: 26 January 2011
The Council of Mortgage Lenders today broadly welcomes the Treasury's announcement that the regulation of second charge lending will be transferred to the FSA; that mortgage protections will be maintained when a mortgage book is sold to an unregulated entity; and that all sale and rent back providers will need to conform to the same standards of consumer protection.
However, this further extension of regulation adds to the already onerous burden of implementing the new mortgage regulatory requirements that will fall to the FSA and its successor, the CPMA. The CML will work constructively with the regulator to try to achieve an implementation process that maximises efficiency to deliver the key outcomes.
CML director general Michael Coogan said:
"With yet more mortgage activities to become regulated, as well as the Mortgage Market Review to finalise, it is more important than ever to focus on the key outcomes that regulation needs to deliver, otherwise implementation could become unmanageable for both firms and the regulator. We are working closely with the FSA to try to construct an effective regulatory system that brings the right results for consumers, firms and the financial system."
Notes to editors
1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 94% of all residential mortgage lending in the UK. There are 11.4 million mortgages in the UK, with loans worth over £1.2 trillion.
2. The Treasury's full announcement - Enhancing consumer protection in the mortgage market - can be viewed on the HM Treasury website.