The CML released research this week and in media coverage suggested the Financial Services Authority had failed to do its homework properly on its responsible lending proposals in the Mortgage Market Review (MMR) paper.
The mortgage lender trade body said it did not expect the impact of the FSA’s proposals to be as high on new business as on past business, but that its analysis showed that the future effect of the MMR could be far higher than the FSA’s own impact assessment has shown.
Ward said in his blog this week: “Wherever you stand on this issue I wonder whether the industry is showing itself in the best possible light. What are trade bodies trying to achieve? The FSA have come out with its consultation paper and welcomed input from the industry. We can either do that discretely with the FSA who, in my experience welcome constructive comment, or we can be shrill and publicly critical about our views. Which do we think will be the most effective way of working with the FSA I wonder?”
He concluded: “I think trade bodies are at risk of damaging the industry and making themselves ineffective and redundant if they aren’t careful.”
The CML declined to comment, but regulator, the FSA said earlier this week:
“We will continue to work with industry and consumers to establish a strong mortgage market where those who can afford mortgages are able to get them. It is in the interests of all that we get this right: both lenders and borrowers suffer from irresponsible lending.”
