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Mortgage Broker Begs Mr. Redwood For Less Regulation

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I wrote another letter to Grant Scapps and John Redwood today, here;

Hello Mr Redwood,

Despite repossessions having always been confined to less than 1% of home owners, overly zealous FSA regulation has lead to millions of perfectly able mature hitherto autonomous adults not even being given a chance at home ownership, the very foundation of our society, the very motivator that keeps so many people focused on betterment.

WHY AM I SENDING YOU THIS EMAIL? > I am not some bitter vested interest. As a mortgage broker I make more money now that people really need me.

The reason I am sending you this is because no one in Government seems to be aware of the toxic effect FSA retail mortgage regulation is having on public sentiment. It is killing off peoples ambition, drive, and creating a mass underclass of RENTERS that have lost their aim, their aspiration and their KEY GOAL, of buying a home of their own.

Without such a goal on the horizon, many simply drift now like jellyfish.

Without the life blood of property transaction, many other related purchases are not made.

Everyone I meet on the ground is talking about this, but no one in Government or the media has twigged this sea change.

“I already know Banks are not lending”, I hear you cry.

Mr Redwood, what no one realises is that the cause for Banks lending reticence is FSA retail regulation.

REMEMBER, THE UK MORTGAGE MARKET WAS NOT PARTICULARLY THE CAUSE OF THE CRASH. For sure we can’t go back to all of the lending extravagances but the balance has tipped much too far the other away.

Vince Cables self-satisfied murmurings about an orderly mortgage market, reflect on him as someone completely and utterly out of touch with reality. I’d bet he does not meet the small self employed people I do every day that cannot buy a home, or if he does he thinks it’s because Banks don’t want to lend and has no concept that FSA regulation is the turd blocking the economic pipe.

Please do not forward me to the FSA – Another MP merely did this and it’s no use. The response I got was that they are not in the business of reviving the economy. They are utterly out of touch middle class bureaucrats without any engagement meeting your typical aspirant Essex builder who can no longer buy a home thanks to regulation.

Which categories of people are disadvantaged by the regulation?

Older applicants – in the ‘good old’ days a 55 yo divorcee wanting to start over used to be able to say they could justify the mortgage as they could always downsize at 65, but oh no, Nanny now taps them on the shoulder with a tsk tsk, and and places unrealistic expectations on lenders to justify the loan. A MATURE AUTONOMOUS ADULT IS USUALY THEREFORE FORCED TO RENT NOW. Nanny knows best.

Just about all small self-employed individuals. 99% of them DO NOT GET REPOSSESSED, yet now 99% are barred a mortgage – I can exaplain why if you so wish.

People who do not fit the standard model – for example they have more than one job

Mr Redwood, you are my last hope. We can really get things motoring if we give people back their heads, and stop Nanny tapping grown adults on the shoulder.

Without a severe curtailment of the FSA. You will not see Britain climb out of the mire.

I’ve been told I’m wasting my time writing to Government, and that I will be dismissed as some mad fool.

Kind regards

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I'm OK with less regulation for mortgage brokers. They ought to know what their client can afford or not.

However - if the morgagee defaults then the broker can either take on the mortgage, or takes a hit of any loss on reselling the house.

Oh, he wants to earn fees without any liability. That's a different matter.

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It is killing off peoples ambition, drive, and creating a mass underclass of RENTERS that have lost their aim, their aspiration and their KEY GOAL, of buying a home of their own.

What an ass. Ambition and drive is built on hard work and building a real business, not sitting back and playing the property lotto. How loudly would this pig be squealing now if Labour hadn't bailed out the bankers and the property speculators.

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Less regulation would be ok.

But in that case you have to not bail out bust banks.

And how does giving huge mortgages with no deposits help millions of people into housing? Last time I looked, the only way you could do that in this country is if millions who sold their homes were moved out of said housing.

There are more people wanting homes than there are homes. It is all about who gets the homes. At the moment, the taxpayers are working hard to ensure that non-taxpayers get them and bankers get a fat wad.

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He's right about the effect of renting. But not the cause. He is a vested interest and also a mad fool.

Yup! :rolleyes::rolleyes:

This guy is unable to face up to a SIMPLE fact:

ALL those years of dodgy/fraudulent/stupid/irresistable/unsustainable "lending" of Mortgages was BOUND to lead to the situation we have now: The whole process was HIGHLY INFLATIONARY - it was the CLASSIC PONZI/PYRAMID scam --- i.e. it DEPENDED on ever rising and rising and rising "values" to keep the whole ball rolling....... The music played and played and played as more and more suckers joined the Ponzi/Pyramid scam thinking they were en route to easy "riches" - and that NOTHING could go wrong.....

WELL -- As the perpetrators and INITIATOR VI's - [bent lenders, bent banks, bent property "developers", bent PR supremos, [etc etc etc.] - WELL KNEW..... -- It was INEVITABLE that the music would, ONE DAY, stop --- and those still holding the baby when the music stopped would pay a high price.......

Not only that - but the straightforward, honest, hard-working [dare I use Gordon Loons' annoying phrase], individuals out there all over the UK [and beyond] would ALSO pay a SERIOUS PRICE for all this..... because it is SO MASSIVE. What is SO sad is that - the average bod simply HASN'T GOT A CLUE about what was REALLY going on......

The most massive fraud in history - as the whole Worldwide Mortgage Fraud Scam clearly is - has brought entire countries to their knees. The sums of money involved - considering what property is deemed to be "worth" these days - are ABSOUTELY GARGANTUAN.......

And to the Masters of the Universe [aka Goldman Sachs and friends] at the top of all this - the guys who played the whole "game" out on largely unsuspecting, ignorant, half-asleep sheeple out there in the real world..... - Well - they offloaded their liabilities and off-shored/turned all their ill-gained "profits" into gold ...... We don't even know a FRACTION of the truth...... It is AWESOME.

And - as yet -- no big guys have been touched yet --- The jail cells should be heaving with them....... But, Oh no! -- They've bought the best lawyers in the land - and they have got themselves off.......

:rolleyes: :angry: :angry:

Edited by eric pebble

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Mature autonomous adults?

Ahhh........he must mean people like Fred Goodwin, Andy Hornby, Adam Applegarth etc etc.

Yeah, less regulation is a really good idea for autonomous adults. :lol:

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He's right about the effect of renting. But not the cause. He is a vested interest and also a mad fool.

Where he has a point is that regulation should not prevent a certain type of person from having a mortgage atall - ie small self employed or 55-60 yr olds. Where he has missed the target woefully, is that he has not addressed the ludicrous income multiples required to buy anything called a house. In fact we need strict criteris on the multiples of income allowed and low ones would be best for the long term. That way house prices have to fall in line and people will not be forced to borrow 4-7 x income to buy a box. That way IR's can fluctuate without fear that the entire economy will suddenly fail as mortgages become unaffordable. It was Merv King himself who stated last year that house prices are controlled largely by the amount people are allowed to borrow. How right he is. House prices are far, far too high. They need to plummet like the good ol' US of A, where they are heading to sensibly priced homes and things will recover there. Young people will eventually buy and it will sort itself out.

Australia is in full house price bubble mode with lending at really stupid income multiples. It is creating false equity - sums no one earned. You could have bought there 10 years ago and made more on the house than going to work. Same here from 1997-2007

Edited by plummet expert

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Without such a goal on the horizon, many simply drift now like jellyfish.

:D

This is the first time someone calls me a jellyfish.

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This man's views alone are a good enough reason for money not to have been printed to prop up prices.

Just look over the sea to Ireland, friend, for a dose of reality.

Who's taking the hit for all those autonomous Irish adults who over borrowed? Not, I guess, people like your good self.

A Jellyfish

And happy so to be

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I have renewed ambition and drive to productionize some (of the 20+) ideas I;ve had over the last decade.

With my decision not to do so in the UK thanks to the costs and having to devote all saved money towards a roof over the familiy's head rather than into a business as well - the UK and its companies can ******ing sling a hook. I'm not bothered about the real chance that some of those ides will be stolen I;m sort of used to it having had the value of my savings and work effort stolen to bail out a bunch of ******ing liar, speculators a crooks.

Clear enough I think and not lacking one ounce of commitment or drive.

Edited by OnlyMe

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I suspect his argument about the self-employed is pretty valid and I doubt a renewed bout of issuing mortgages to the self-employed on a good income would significantly prevent large house price falls going forward.

In fact, I suspect an Essex builder (with the handy option of being able to undertake a large chunk of cash in hand work) would be a pretty good bet to lend to.

I did actually have a discussion with John Redwood about the property boom before the crash and from what I can recollect I strongly suspect he may well be sympathetic to reinflating the bubble.

Edited by Soon Not a Chain Retailer

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Everyone has to prove their income for the purposes of tax including the self-employed. The only reason for the existence of self-cert mortgages is either mortgage-fraud or tax evasion.

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Everyone has to prove their income for the purposes of tax including the self-employed. The only reason for the existence of self-cert mortgages is either mortgage-fraud or tax evasion.

Precisely.

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Hmmm.

Redwood may be a bit of an ****.

But I really can't see him having any truck with this kind of idiot. The lack of basic literacy shines through and highlights the intellectual deficiencies of any argument he might be trying to make.

Maybe Prescott would be the better John to write to?

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      • down 5% +
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