Ray Boulger Is Not Happy

[Bruce Banner]

Speaking to Declan on BBC News, he said that if the proposed FSA rules come into force, 50% of people that currently get a mortgage wouldn't be able to do so. Declan's answer, they'll have to go to mum and dad.

[Bloo Loo]

course, obviously, 50% more could get sensible mortgages, and buy a home, if prices werent inflated by Sub prime loans in the first place.

If money is worth nothing, then it matters not to anyone how much is lent, the cost of the house, or anything priced in money.

Boulger...get back to the bankruptcy court.

[papag]

Speaking to Declan on BBC News, he said that if the proposed FSA rules come into force, 50% of people that currently get a mortgage wouldn't be able to do so. Declan's answer, they'll have to go to mum and dad.

Wonder how much he has given to his kids

[Injin]

Wonder how much he has given to his kids

£10 a week pocket money loaned at interest. APR? Phone numbers.

(Probably.)

[Bruce Banner]

http://www.moneymarketing.co.uk/mortgages/ray-boulger-fsa-is-biggest-threat-to-mortgage-market/1019670.article

John Charcol senior technical manager Ray Boulger says the FSA is the biggest threat to the mortgage market.

Boulger’s claim follows the release of Council of Mortgage Lenders research which shows 3.8m mortgages - or 51 per cent of loan applications - would not have been granted if the regulator’s Mortgage Market Review had been in place between the second quarter of 2005 and the first quarter of 2009.

Boulger says: “I actually think the biggest threat to the mortgage market over the next year is not the lack of mortgage lending - it is not even the lack of consumer confidence - it is the FSA.”

Boulger has also called for the Government to step in. He says: “I’m surprised the Government hasn’t taken more of a stand on this. If the FSA proposals go through, it will have a big impact on house prices. And if we had a substantial fall in house prices, you would then need, in all probability, a second bank bailout. And you could stop all of that by sensible regulation.”

Emba group sales and marketing director Mike Fitzgerald believes the measures will lead to a “lost generation” of mortgage clients.

He says: “The CML research just shows you that if the MMR comes in its current format, there is going to be a dead 10 years, we’ll have a lost generation of mortgage clients. I don’t think they have got any appreciation about the impact of their rules.”

“It is a social right to be able to own your own home - you are denying them that right with these proposals.”

The Association of Mortgage Intermediaries and the Building Societies Association have also expressed concern about the MMR.

AMI director Robert Sinclair says: “The regulators apparent aversion to a type of borrowing that has served many consumers very well appears predetermined rather than driven by rationale. When they are delivered on an advised basis and with a robust assessment of appropriateness for the customer, there is an appropriate place and use for interest only mortgages.”

BSA head of mortgage policy Paul Broadhead says: “There is a real danger that the FSA could introduce over-burdensome regulation that will stifle this market and affect many existing borrowers - including many for whom this is a suitable option.”

[Giordano Bruno]

What Ray Bulger says implies that 51% mortgages were provided without due diligence and were unsafe. But when the banks don't get the money back the muggins taxpayer can always bail them out.

[Pope Benedict XVI]

What Ray Bulger says implies that 51% mortgages were provided without due diligence and were unsafe. But when the banks don't get the money back the muggins taxpayer can always bail them out.

Boulger is quite clear about this

Boulger has also called for the Government to step in. He says: “I’m surprised the Government hasn’t taken more of a stand on this. If the FSA proposals go through, it will have a big impact on house prices. And if we had a substantial fall in house prices, you would then need, in all probability, a second bank bailout. And you could stop all of that by sensible regulation.”

[OnlyMe]

Loan sharks like bigger loans, they get more commission.

[Redcellar]

Boulger is quite clear about this

Boulger has also called for the Government to step in. He says: “I’m surprised the Government hasn’t taken more of a stand on this. If the FSA proposals go through, it will have a big impact on house prices. And if we had a substantial fall in house prices, you would then need, in all probability, a second bank bailout. And you could stop all of that by sensible regulation.”

So where does he get the idea that the banks will have problems from? They will only have problems if people stop paying back the loans and on what basis would they do that. They would have to go into bankruptcy wouldn't they? And that's neither easy nor a fun activity and last for years and years. I doubt that many would do that.

They will fall, people will carry on as normal, maybe not being able to move, but carry on as normal. That's it. Doesn't seem 'four horsemen of the apolacypse' scenario to me. Anyone got any opposing views please?

[Injin]

So where does he get the idea that the banks will have problems from? They will only have problems if people stop paying back the loans and on what basis would they do that. They would have to go into bankruptcy wouldn't they? And that's neither easy nor a fun activity and last for years and years. I doubt that many would do that.

They will fall, people will carry on as normal, maybe not being able to move, but carry on as normal. That's it. Doesn't seem 'four horsemen of the apolacypse' scenario to me. Anyone got any opposing views please?

The banks never loaned any money.

Ergo, it wil have to be created by the central bank in order to be "paid back."

[Pent Up]

The proposals are to only lend to people who can afford to repay it. How the hell is that a problem. This man sure is not suggesting that the banks lend to people you can't afford to repay it?

Also that 50% of people will get a mortgage no problem. Once prices have fallen.

[Redcellar]

The proposals are to only lend to people who can afford to repay it. How the hell is that a problem. This man sure is not suggesting that the banks lend to people you can't afford to repay it?

Also that 50% of people will get a mortgage no problem. Once prices have fallen.

Ah but that's the problem. Banks can lend to people who can't afford it, an interest only mortgage is an example. If you intend to sell the house at the end, then you only need cover the interest payments, so therefore buy a much more expensive place. That is deemed acceptable by a bank, so long as they recover their money. Also, isn't 5 or 6 x income affordable? It's relative to your lifestyle and priorities. I could eat beans and tuna every day and afford a mansion. But if I want a holiday and a new car every three years, then that's unaffordable.

The FSA are restricting what they deem affordable I believe. And it's not based on ever increasing house prices. They are taking a chunk of the decision making away from the banks.

Personally I think the FSA is right, but if your job is in a bank then you will think them wrong for the above reasons.

[winkie]

The proposals are to only lend to people who can afford to repay it. How the hell is that a problem. This man sure is not suggesting that the banks lend to people you can't afford to repay it?

Also that 50% of people will get a mortgage no problem. Once prices have fallen.

Quite right....he has to ask himself would he lend someone his own money, if the answer is no then why would he think others would.

[crash2006]

Speaking to Declan on BBC News, he said that if the proposed FSA rules come into force, 50% of people that currently get a mortgage wouldn't be able to do so. Declan's answer, they'll have to go to mum and dad.

These guys just want to flog off there properties, and they are using the media to influence there views, by pretending to project unbias views.

[“Nasty Piece of work”]

I am suprised that Declan understands the idea of parentage, and RB, as the spore of Satan, will look upon it as a bizarre principle.

[Injin]

The proposals are to only lend to people who can afford to repay it. How the hell is that a problem. This man sure is not suggesting that the banks lend to people you can't afford to repay it?

Also that 50% of people will get a mortgage no problem. Once prices have fallen.

Lending at interest can't be repaid as a totality.

The proposals do nothing.

[erranta]

Boulger is quite clear about this

Cameron has made it clear there is no more cash for any more bailouts - thus banks bricking (trying to reload their empty wholly self-created 'Enron' vaults) themselves, making up any excuse not to pass mortgage applications and not lending to small/medium size businesses.

Edited November 6, 2010 by erranta

[erranta]

So where does he get the idea that the banks will have problems from? They will only have problems if people stop paying back the loans and on what basis would they do that. They would have to go into bankruptcy wouldn't they? And that's neither easy nor a fun activity and last for years and years. I doubt that many would do that.

They will fall, people will carry on as normal, maybe not being able to move, but carry on as normal. That's it. Doesn't seem 'four horsemen of the apolacypse' scenario to me. Anyone got any opposing views please?

The banks know damn well interest rates will be back to norm/10% within a couple of years - wiping out the majority of the 1.3 million (renters off the banks) on recent mewed/over-extended I/O liar loan mortgages!

Edited November 6, 2010 by erranta

[winkie]

The banks know damn well interest rates will be back to norm/10% within a couple of years - wiping out the majority of the 1.3 million (renters off the banks) on recent mewed/over-extended I/O liar loan mortgages!

You little devil you.

[South Lorne]

...what Boulger has to realise is his 'good old days' of bad lending are over ...Gordo has gone and therefore no more credit bubble this generation .....most of the losses have yet to be realised as the tide continues to flow out ...and the tsunami of bad debts and collapse will hit us as the crunch approaches it most destructive phases.....

[hpc-craig]

"A whole generation of mortgage clients will be lost"

He can't even be bothered to try and disguise his VI. Just throwing his toys out of his pram because things aren't going his way anymore.

Didn't Charcol's go bust anyway. if they can't manage their own income and expenditure then how can they possibly give out mortgage advice and deem what is affordable and what isn't ?

[the flying pig]

...If the FSA proposals go through, it will have a big impact on house prices...

boo hoo

[South Lorne]

boo hoo

...it's actually smiles .. ... all round ...prices will adjust downwards to honest levels....

[ingermany]

He says: “I’m surprised the Government hasn’t taken more of a stand on this. If the FSA proposals go through, it will have a big impact on house prices. And if we had a substantial fall in house prices, you would then need, in all probability, a second bank bailout.

I think we can see where he's coming from. He's effectively saying government can't afford to let house prices fall..................ever.

[the primitive]

Ah but that's the problem. Banks can lend to people who can't afford it, an interest only mortgage is an example. If you intend to sell the house at the end, then you only need cover the interest payments, so therefore buy a much more expensive place. That is deemed acceptable by a bank, so long as they recover their money. Also, isn't 5 or 6 x income affordable? It's relative to your lifestyle and priorities. I could eat beans and tuna every day and afford a mansion. But if I want a holiday and a new car every three years, then that's unaffordable.

The FSA are restricting what they deem affordable I believe. And it's not based on ever increasing house prices. They are taking a chunk of the decision making away from the banks.

Personally I think the FSA is right, but if your job is in a bank then you will think them wrong for the above reasons.

If you get a £150K mortgage on a salary of £30K a year, the repayments are half your gross income at 9.29% IR.

Half your NET income at much lower IR of about 6% That is not affordable for most people when you add in running a car, council tax, eating food, paying other bills, and even a rleatively modest lifestyle.