Sunday, April 3, 2011
FSA performs spectacular U-turn
The Financial Services Authority has been conducting a mortgage market review which threatened to restrict home loans to gold-plated applicants only, turning the clock back nearly half a century. Initially, the watchdog stood firm in the face of criticism that its plans would cause enormous hardship for millions of borrowers who would be trapped in homes they could not escape from. Repossessions might have surged as interest rates climbed, and borrowers on expensive deals were unable to remortgage. However, in its recently published business plan for 2011/12, the FSA finally appeared not only to be backtracking, but reproached the mortgage industry for taking the conclusions of its review for granted.