Wednesday, September 22, 2010

That was the whole point, you ****

New mortgage lending rules are 'fatally flawed'

New rules for mortgage lending are "fatally flawed" and will lead to house price falls, a lending body said today... "Interest-only mortgages will disappear from the market in the future." [Michael Coogan] said the unintended consequences of the new mortgage regulations were that it was likely to "stifle innovation and opportunity" and he urged the FSA to urgently reassess its proposals. He said: "We do not want to sleepwalk into a housing finance market which is sustainable, but meets almost nobody's aspirations because it is so risk-averse."

Posted by mark wadsworth @ 02:31 PM (1796 views)
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12 thoughts on “That was the whole point, you ****

  • “He also warned that the new rules were likely to create “mortgage prisoners” who were unable to move under the new criteria.”

    I think that used to be called negative equity. So if the estate agents won’t do it, the bank valuers will.

    Was it yesterday I said something about reaching a bailout zenith then letting them have it.

    Smuggy, I hope your not stuck in the doghouse?

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  • cat and canary says:

    “The unintended consequences of new mortgage regulation are likely to stifle innovation and opportunity,” said Mr Coogan.

    …innovation…innovation?…what innovation….paint the walls egg-shell white, add a pot plant or two and flog it for £10,000 profit?

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  • 1. cat and canary… lol

    ‘I think Mr Cool-gain meant to say ‘stifle fatally flawed renovation and pot unity.’

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  • Arthur Kinnell says:

    Bankers, eh? I think the good Doctor Vince was showing admirable restraint referring to you as ‘Spivs’.

    It wasn’t your fault you lent money you didn’t have to people who couldn’t pay it back. It was the regulators’ fault for not stopping you.

    It wasn’t your fault if taxpayers’ bail out money is no good for lending but perfectly OK for trousering as bankers’ bonuses. It was the government’s fault for giving it to you in the first place, or the taxpayers’ fault, or anyone’s fault but yours.

    It’s like a serial killer blaming the victims for being in the wrong place at the wrong time.

    You just don’t get it, do you? If you don’t like it here, clear off abroad then, quit moaning about it, get on and do it, you’ll not be missed.

    It was the house price bubble, created by you and your irresponsbile lending based on greed, that got us into this mess. You blame lack of regulation, but as soon as regulation is proposed – quite reasonable regulation like making sure people can afford the debt – you start to squeal.

    To quote Clement Attlee:

    “a period of silence on your part would be welcome.”

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  • No the innovation was letting people get 125% at 6 times their salary and so that as a bank you get more interest.

    Completely irresponsible, risky and unsustainable, but innovative non the less.

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  • Disgusted. CML trying to whip up popular indignation against its regulator.

    Who is the better judge at the end of the day, the FSA or the CML?

    Coogan you should be ashamed. The generations that follow onto the housing ladder will never forgive you.

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  • Interesting poll on the artilce;

    “Latest 24dash poll
    Should the housing sector be protected from the Government’s spending cuts?


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  • “…. because it is so risk-averse.”

    Words fail me. His sort innovations have encouraged millions of sheeple to take risks that will leave them homeless. To pretend that interest rates will not rise from their lowest extremes in 400 years is obscene.

    Have recently watched a astonishingly good interview with William Black ( ); where he explores the nature of mortgage fraud in some detail (28 minutes).

    Coogan should be ashamed … and he should be held legally to account.

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  • crash bandicoot says:

    This is unreal in so many ways I nearly found myself shouting at the internet.

    “leading to lower levels of house sales, which would in turn lead to price falls.” So the last couple of years worth of low volumes have been causing price falls? Heven knows where we would be if the banks had been able to lend as they’d like to have – oh wait they have been.

    How about this for a solution, instead of the FSA imposing regulations why not just make the CML lenders responsible for the outstanding debt when a borrower defaults. That way they would be free to be as “innovative” as they want. How “innovative” exactly do you think that would be?

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  • Well to be honest, being a self sufficient type that I am, I don’t really like being told how much I can or can’t borrow.

    If I put down say 25-40% deposit and then fail to keep up repayments I’m a big enough man to realise I’ve screwed up and will have to downsize and probably loose some money.

    Providing there’s equity I really don’t see the problem with self cert. Reality will be the leveller of that Market providing people keep to the rules which are quite simple.

    Your home could be repossessed of you do not keep up repayments on it.


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  • tenyearstogetmymoneyback says:

    The Northern Rock Together Mortgage was probably the most innovative financial product of the 21st Century.
    Instant Negative equity at the stoke of a pen. We all know how it ended.

    Crash Bandicoot I love your suggestion (which I have made in the past).
    If we had “Jingle Mail” then we would only be in the mess the USA is in rather than the one we are now.

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  • STR, you obviously haven’t heard of the recent innovation:

    “Your home could be repossessed subsidised by the taxpayer if you do not keep up repayments on it.”

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