Forthcoming mortgage regulation will not provide a sensible or cost-effective framework, according to a poll carried out by the Council of Mortgage Lenders (CML).
The poll, which was carried out among 200 lenders and intermediaries at a recent CML conference, revealed that 74% of delegates did not believe the proposed rules ‘ to be brought into force by the Financial Services Authority ‘ would provide a positive structure for regulation.
When the poll was repeated half-way through the conference, the amount of delegates unimpressed with the Treasury’s proposals rose to 79%.
Nearly half of all delegates also believed that the new rules would fail to improve consumers’ chances of buying suitable mortgage products. Despite the introduction of initiatives such as pre-application illustrations ‘ designed to help consumers compare products more easily ‘ delegates remained unconvinced the new rules would work.
Michael Coogan, director of the CML, said it is important for advisers and lenders to let the Treasury know their opinions on the proposals before it is too late.
‘The poll shows that, despite the improvements to the proposed regulatory structure announced by the Treasury in December, there is still considerable unease among lenders and intermediaries about the possible outcome. It is essential for them to continue to engage in the process and express their views as the debate continues. There is clearly an important role for the CML in helping to shape the final rules to ensure the Financial Services Authority is proportionate, effective and cost-effective,’ he said.