The CML said: “This isn’t desperation. We just want to ensure that everyone who can respond does respond. This isn’t just a trade body problem.”
This follows criticism from the Treasury Select Committee that mortgage trade bodies had been “too nice” during regulatory negotiations.
“We believe very strongly in what we do and we want to make sure the outcome is right. There are a lot of people relying on us in the industry,” said a CML spokesperson.
“Both pieces of research produced yesterday concluded the rules are unworkable and would exclude more of the population than the FSA supposes from the mortgage market.
“We’re coming to the end of the consultation process and we have proved that what the FSA thinks will happen will not come to pass,” said the spokesperson.
The mortgage lender trade body called the proposals “flawed and impractical” adding the lack of government clarity meant the proposals were unlikely to create stability or support the housing market.
“There has been no clear housing policy, since the Coalition came into power. Grant Shapps isn’t in the cabinet where his predecessor was, telling us a lot about this government’s priorities,” added the spokesperson.
The responsible lending consultation is due to end on 16 November.
