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Regulator And Lenders In Mortgage Lending Row

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Regulator and lenders in mortgage lending row

Mortgage lenders have called on the UK financial regulator to water down its plans to restrict mortgage lending.

The Council of Mortgage Lenders (CML) says the plans of the Financial Services Authority (FSA) are "flawed and impractical".

But the FSA said it was simply trying to drive out irresponsible lending.

Among the FSA's plans are that lenders should have to:

verify the income of all borrowers

assess an applicant's income and expenditure

assess their ability to repay on a full capital-and-interest basis

assume loans are for no longer than 25 years

restrict the size of loans to people with past payment problems, and

assume that interest rates might rise from their initial level.

http://www.bbc.co.uk/news/business-11696126

LIAR LOANS HAVE PROPPED UP THE WHOLE SCAM -- WILL THEY GO???

http://www.bbc.co.uk/news/business-11696126

Edited by eric pebble

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The CML argued that the government appeared uncertain about whether or not it wanted to protect a vulnerable minority of borrowers, or to help many other people achieve their aim of home ownership.

It said both could be achieved by a freer mortgage market and a safety net for distressed borrowers.

One assumes that this "safety net" would be provided by the tax payer, rather than any of their members, in their minds.

In any case, when are these proposals due to be implemented?

Is the FSA not being disbanded and split between the treasury/BOE? Or has that changed.

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Among the FSA's plans are that lenders should have to:

verify the income of all borrowers

assess an applicant's income and expenditure

assess their ability to repay on a full capital-and-interest basis

assume loans are for no longer than 25 years

restrict the size of loans to people with past payment problems, and

assume that interest rates might rise from their initial level.[/b][/i]

I think that's potentially a very significant one because it would effectively kill off all interest-only mortgages in the sense that people have become used to.

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That's proposterous!! I mean, 'assess their ability to pay' - those crazy FSA boys!

That's some sort of radical idea that is. I mean who ever heard of lending people money on the ability of paying it back, far better to gamble on house prices to go up to enable the bank to get it's money back.

The FSA should be whipped.

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That's some sort of radical idea that is. I mean who ever heard of lending people money on the ability of paying it back, far better to gamble on house prices to go up to enable the bank to get it's money back.

The FSA should be whipped.

The bank doesn;t need to get the money back if the jerk taxpayer can be raped for it.

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Regulator and lenders in mortgage lending row

Mortgage lenders have called on the UK financial regulator to water down its plans to restrict mortgage lending.

FFS!

Who's running this country.. the regulators or the frickin' mortgage lenders?

Mortgage lenders should stick to lending mortgages and the FSA should stick to their guns!

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Regulator and lenders in mortgage lending row

Mortgage lenders have called on the UK financial regulator to water down its plans to restrict mortgage lending.

The Council of Mortgage Lenders (CML) says the plans of the Financial Services Authority (FSA) are "flawed and impractical".

But the FSA said it was simply trying to drive out irresponsible lending.

Among the FSA's plans are that lenders should have to:

verify the income of all borrowers

assess an applicant's income and expenditure

assess their ability to repay on a full capital-and-interest basis

assume loans are for no longer than 25 years

restrict the size of loans to people with past payment problems, and

assume that interest rates might rise from their initial level.

It is quite frightening that some leanders were not making these checks in the first place.

Verifying incomes and ability to pay as well as factoring in potential rises in IR's should be the fundementals of any lending practice.

Where have the FSA been for the last 10 years? One might almost think that the lack of control was politically motivated....

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Regulator and lenders in mortgage lending row

Mortgage lenders have called on the UK financial regulator to water down its plans to restrict mortgage lending.

The Council of Mortgage Lenders (CML) says the plans of the Financial Services Authority (FSA) are "flawed and impractical".

But the FSA said it was simply trying to drive out irresponsible lending.

Among the FSA's plans are that lenders should have to:

verify the income of all borrowers

assess an applicant's income and expenditure

assess their ability to repay on a full capital-and-interest basis

assume loans are for no longer than 25 years

restrict the size of loans to people with past payment problems, and

assume that interest rates might rise from their initial level.

http://www.bbc.co.uk/news/business-11696126

LIAR LOANS HAVE PROPPED UP THE WHOLE SCAM -- WILL THEY GO???

http://www.bbc.co.uk/news/business-11696126

God forbid they should apply common sense to their lending criteria...

Ridiculous that this could even be viewed as even vaguely controversial or in some objective way tight lending. But it's far too late for millions of people. Not so much locking the stable door after the horse has bolted, but locking it after the horse has escaped to impregnate another horse, whose foal has subsequently died of old age <_<

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CML v FSA

I haven't seen a mismatch like that since Ali took on Dunn.

The FSA have proved to be one of most useless organisations known to man. Every time they come up with an idea they "canvass the industry" which means they ask for permission and are always told "NO BUGGER OFF" so they do.

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I think that's potentially a very significant one because it would effectively kill off all interest-only mortgages in the sense that people have become used to.

The FSA proposal doesn't preclude a Lender from giving a deal on an i/o basis, but the mortgage must be assessed (for affordability) on the basis of a 25 year repayment loan. Effectively, only high net worth clients would likely be able to leverage on i/o in the future.

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That's proposterous!! I mean, 'assess their ability to pay' - those crazy FSA boys!

May 18th, 2009

"It was the Basel system of weighting assets by their supposed riskiness that essentially allowed the Enronization of banks’ balance sheets, so that

(for example) the ratio of Citigroup’s tangible on- and off-balance-sheet assets to its common equity reached a staggering 56 to 1 last year."

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The FSA have proved to be one of most useless organisations known to man. Every time they come up with an idea they "canvass the industry" which means they ask for permission and are always told "NO BUGGER OFF" so they do.

And we all know what happened while the CML was getting it's way.. they all lent too much and helped destabilised the entire financial system.

If you're not prepared to let the kiddies fall over and learn from their mistakes.. then at least take the alcohol away from them.

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The FSA proposal doesn't preclude a Lender from giving a deal on an i/o basis, but the mortgage must be assessed (for affordability) on the basis of a 25 year repayment loan. Effectively, only high net worth clients would likely be able to leverage on i/o in the future.

Precisely.

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CML v FSA

I haven't seen a mismatch like that since Ali took on Dunn.

The FSA have proved to be one of most useless organisations known to man. Every time they come up with an idea they "canvass the industry" which means they ask for permission and are always told "NO BUGGER OFF" so they do.

The FSA has to consult on any significant regulatory change, it's part of the Financial Services & Markets Act. The good news is that this consultation is still open, the bit about interest only mortgages has now closed but the rest is open until 16th Nov, anyone can respond, I've done so and I recommend others to do so as well.

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this will push up the cost of mortgage processing and lenders'-risk and will require due diligence instead of hung over 17 year olds (used to work for a major lender - offices full of em) to check the applications

it will result in an increased IR spread

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And we all know what happened while the CML was getting it's way.. they all lent too much and helped destabilised the entire financial system.

If you're not prepared to let the kiddies fall over and learn from their mistakes.. then at least take the alcohol away from them.

And you have to ask: How the HELL has the CML managed to get away with their Ponzi Scam for SO long??

Methinks there's a whiff of scandal..... :ph34r::blink: :angry:

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...surely this is the trigger to close down the CML and ask lenders to put up more responsible representation....all the control issues raised should have been part of the basic process and all acting outwith the guidelines should be fined for not following legitimate lending procedures .... shareholders should be able to sue..... <_<

Edited by South Lorne

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...surely this is the trigger to close down the CML and ask lenders to put up more responsible representation....all the control issues raised should have been part of the basic process and all acting outwith the guidelines should be fined for not following legitimate lending procedures .... shareholders should be able to sue..... <_<

Yup - I agree 100%.

"CML": "The COUNCIL OF MORTGAGE LIARS".

Edited by eric pebble

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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