Thursday, September 23, 2010

Interesting headline

Mortgage plan will force house prices down, CML warns

The CML's hissy fit has already been adequately covered on the blog but I wanted to post this for two reasons: the title (one of the bluntest I've ever seen on house prices) and this bit, towards the end: "Mr Coogan argued that if prices fell again, undermining the security houses gave lenders for loans already made, then mortgage rationing would continue and many more people would be locked out of home ownership." Yeah, Coogan is praying for the priced out generation - to make sure we stay that way.

Posted by quiet guy @ 02:40 AM (1803 views)
Please complete the required fields.



13 thoughts on “Interesting headline

  • Wow. That’s a gobsmacking headline which just about sums up the institutional bias the BBC has on the subject.

    Another way of writing that headline is:

    “Housing costs to becoming cheaper for hard working families assures CML”

    I also love the line about stifling innovation. Judging from the recent credit boom and bust, I think the type of innovation cheap and unregulated credit has given the world is not the type of innovation it needs.

    Reply
    Please complete the required fields.



  • Perhaps not, with more QE keeping interest rates low and pushing prices up…

    Reply
    Please complete the required fields.



  • That is one of the laziest pieces of journalism I’ve seen in a long time. Every paragraph clearly comes from the CML press release.

    I haven’t seen the Beeb being quite this biased for a while either – gobsmacking.

    Reply
    Please complete the required fields.



  • It is disgusting seeing the banks’ representative whip up popular indignation aghainst its regulator.

    This is the July FSA consultation paper referred to by the CML. Lots of good stuff in it and well worth a skim read.

    http://www.fsa.gov.u…/cp/cp10_16.pdf

    And this is the footnote to which Mr Cougar is referring.

    “37 The NiGEM model also projected the change in house prices from the change in mortgage lending as part of its
    modelling the general macroeconomic impacts. This is not ideal, given that the NiGEM model does not model the
    direct impact of mortgage lending to house prices. Nevertheless it did project significant falls in house prices from
    the reduction in lending. In addition, the impact of a drop in lending on house prices was also modelled using the
    Oxford Economic Forecasting model, another model of the global macroeconomy. This gave similar house price
    impacts to those from NiGEM. Future work could focus in part on this issue, improving the modelling of house
    prices, either within NiGEM or using a separate model of house prices and mortgage lending.”

    Reply
    Please complete the required fields.



  • I don’t think this is bias. The CML’s press releases have been routinely published by the Beeb for a long time..

    ..but here we have the rather pathetic sight of Mr Coogan swimming against the tide..

    There is a growing recognition both in Westminster and amongst the public, that high house prices are a problem, and not a boon.

    Trying to make a contrived case for their preservation only serves to make the CML look silly, self interested, and out of touch.

    Reply
    Please complete the required fields.



  • “The Oxford Economic Forecasting model.”

    Crikey! I wonder where that was hidden. 😉

    Reply
    Please complete the required fields.



  • tom, bias often manifests not by what is said or written but by what is not said. If the BBC published Socialist Worker articles word-for-word tomorrow, could you also say that is an innocent and objective quotation, or a legitimization of a vested interest’s partisan outlook?

    Think about it …

    Reply
    Please complete the required fields.



  • paul i think the only bias is your bias toward:

    1. the bbc
    2. the babyboomers

    as uncle tom said previously the bbc may have exhibited bias previously, and yes, its actually part of social mood that they are reflecting a lack or shall we say (for your benefit) less bias now. perhaps they just reflect the populace view or maybe its the other way round? in other words their take on things is an indication of bubbleomics –

    “Think about it …”

    Reply
    Please complete the required fields.



  • So back to the CML :

    “Our aim is to help to foster a favourable operating environment in the UK housing and mortgage markets. We are the representative voice for the residential mortgage lending industry, and the central provider of economic, statistical, legal, research and other market information.”

    “our members account for around 94% of UK residential mortgage lending”

    ok so the thing that confuses me now is what they mean by a favourable operating environment. Did the over expansion by say B&B and NR really foster a “favourable operating environment in the UK housing and mortgage markets”. Didnt in effect, other members have to pay twice for what happened? – once because they lost business to 125% mortgages and once because of the levy on other lenders to pay for the FSCS?

    And now – doesnt stability and actually having customers that are more likely to be able to pay off the loans you have provided, foster a favourable environment, or would you rather perpetuate the UK equivalent of subprime?

    I suppose the real point is their mandate is to foster lending and profits at previous levels based on prior history. Living in teh past i am afraid

    Reply
    Please complete the required fields.



  • Putting the words “Our aim is to help to foster a favourable operating environment in the UK housing and mortgage markets” and “We are the representative voice for the residential mortgage lending industry…” in the same paragraph is as good as saying “Our aim is to do what is best for the banks”.

    Like I said yesterday, banks work on a percentage, and a percentage of a bigger amount is a bigger amount. So if prices and mortgages stay high, banks make more money. So a favourable operating environment for them is one with high prices.

    Reply
    Please complete the required fields.



  • sibley's b'stard child says:

    “In July it pointed out that so-called non-verified loans still made up 43% of all home loans granted in the first three months of 2010”.

    Great, so even now almost a half of all mortgages were self-cert. Synaptic overload; cannot compute.

    Reply
    Please complete the required fields.



  • SBC, indeed. The lunatics are still firmly in control of the asylum.

    Reply
    Please complete the required fields.



  • “Despite this the mortgage industry has been alarmed at the prospect of excessive new formal restrictions, such as being obliged to demand that borrowers prove they can pay.”

    Lazy / Bias same thing. As long as the other side of the issue that cheaper houses could be a good thing was presented in the article, it wasn’t.

    Yeh, it does seem excessive that I should be able to repay, I am off to the Porsche showroom, won’t need my wallet.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>