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FSA backs down on tough lending rules
Conrad
Posts: 33,137 Forumite
http://www.insidehousing.co.uk/news/development/fsa-backs-down-on-tough-lending-rules/6514215.article
The Financial Services Authority has backed down on proposed mortgage lending rules that critics said would make it impossible for first-time buyers to get loans.
In its business plan for 2011/12 the FSA says its proposal to require lenders to ensure borrowers can repay loans over 25 years ‘may not be appropriate’. It also says it does not intend to ban interest-only loans, as had been suggested.
The change in tone follows pressure from housing minister Grant Shapps, who had made it clear he felt the proposals were a step too far, and held meetings with the FSA earlier in the year.
............................
Also I wrote another letter to Grant Shapps and John Redwood today, here;
Hello Mr Redwood,
Despite repossessions having always been confined to less than 1% of home owners, overly zealous FSA regulation has lead to millions of perfectly able mature hitherto autonomous adults not even being given a chance at home ownership, the very foundation of our society, the very motivator that keeps so many people focused on betterment.
WHY AM I SENDING YOU THIS EMAIL? > I am not some bitter vested interest. As a mortgage broker I make more money now that people really need me.
The reason I am sending you this is because no one in Government seems to be aware of the toxic effect FSA retail mortgage regulation is having on public sentiment. It is killing off peoples ambition, drive, and creating a mass underclass of RENTERS that have lost their aim, their aspiration and their KEY GOAL, of buying a home of their own.
Without such a goal on the horizon, many simply drift now like jellyfish.
Without the life blood of property transaction, many other related purchases are not made.
Everyone I meet on the ground is talking about this, but no one in Government or the media has twigged this sea change.
“I already know Banks are not lending”, I hear you cry.
Mr Redwood, what no one realises is that the cause for Banks lending reticence is FSA retail regulation.
REMEMBER, THE UK MORTGAGE MARKET WAS NOT PARTICULARLY THE CAUSE OF THE CRASH. For sure we can’t go back to all of the lending extravagances but the balance has tipped much too far the other away.
Vince Cables self-satisfied murmurings about an orderly mortgage market, reflect on him as someone completely and utterly out of touch with reality. I’d bet he does not meet the small self employed people I do every day that cannot buy a home, or if he does he thinks it’s because Banks don’t want to lend and has no concept that FSA regulation is the turd blocking the economic pipe.
Please do not forward me to the FSA – Another MP merely did this and it’s no use. The response I got was that they are not in the business of reviving the economy. They are utterly out of touch middle class bureaucrats without any engagement meeting your typical aspirant builder who can no longer buy a home thanks to regulation.
Which categories of people are disadvantaged by the regulation?
Without a severe curtailment of the FSA. You will not see Britain climb out of the mire.
I’ve been told I’m wasting my time writing to Government, and that I will be dismissed as some mad fool.
Kind regards
The Financial Services Authority has backed down on proposed mortgage lending rules that critics said would make it impossible for first-time buyers to get loans.
In its business plan for 2011/12 the FSA says its proposal to require lenders to ensure borrowers can repay loans over 25 years ‘may not be appropriate’. It also says it does not intend to ban interest-only loans, as had been suggested.
The change in tone follows pressure from housing minister Grant Shapps, who had made it clear he felt the proposals were a step too far, and held meetings with the FSA earlier in the year.
............................
Also I wrote another letter to Grant Shapps and John Redwood today, here;
Hello Mr Redwood,
Despite repossessions having always been confined to less than 1% of home owners, overly zealous FSA regulation has lead to millions of perfectly able mature hitherto autonomous adults not even being given a chance at home ownership, the very foundation of our society, the very motivator that keeps so many people focused on betterment.
WHY AM I SENDING YOU THIS EMAIL? > I am not some bitter vested interest. As a mortgage broker I make more money now that people really need me.
The reason I am sending you this is because no one in Government seems to be aware of the toxic effect FSA retail mortgage regulation is having on public sentiment. It is killing off peoples ambition, drive, and creating a mass underclass of RENTERS that have lost their aim, their aspiration and their KEY GOAL, of buying a home of their own.
Without such a goal on the horizon, many simply drift now like jellyfish.
Without the life blood of property transaction, many other related purchases are not made.
Everyone I meet on the ground is talking about this, but no one in Government or the media has twigged this sea change.
“I already know Banks are not lending”, I hear you cry.
Mr Redwood, what no one realises is that the cause for Banks lending reticence is FSA retail regulation.
REMEMBER, THE UK MORTGAGE MARKET WAS NOT PARTICULARLY THE CAUSE OF THE CRASH. For sure we can’t go back to all of the lending extravagances but the balance has tipped much too far the other away.
Vince Cables self-satisfied murmurings about an orderly mortgage market, reflect on him as someone completely and utterly out of touch with reality. I’d bet he does not meet the small self employed people I do every day that cannot buy a home, or if he does he thinks it’s because Banks don’t want to lend and has no concept that FSA regulation is the turd blocking the economic pipe.
Please do not forward me to the FSA – Another MP merely did this and it’s no use. The response I got was that they are not in the business of reviving the economy. They are utterly out of touch middle class bureaucrats without any engagement meeting your typical aspirant builder who can no longer buy a home thanks to regulation.
Which categories of people are disadvantaged by the regulation?
- Older applicants – in the ‘good old’ days a 55 yo divorcee wanting to start over used to be able to say they could justify the mortgage as they could always downsize at 65, but oh no, Nanny now taps them on the shoulder with a tsk tsk, and and places unrealistic expectations on lenders to justify the loan. A MATURE AUTONOMOUS ADULT IS USUALY THEREFORE FORCED TO RENT NOW. Nanny knows best.
- Just about all small self-employed individuals. 99% of them DO NOT GET REPOSSESSED, yet now 99% are barred a mortgage – I can explain why if you so wish.
- People who do not fit the standard model – for example they have more than one job
Without a severe curtailment of the FSA. You will not see Britain climb out of the mire.
I’ve been told I’m wasting my time writing to Government, and that I will be dismissed as some mad fool.
Kind regards
0
Comments
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The MMR is still going to be published in early 2012. So no doubt there will be tighter regulation in some form.0
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I'm sure they get ranty letters like that all the time. Don't see it making a blind bit of difference other than getting your name on some sort of 'watch list' somewhere.Set your goals high, and don't stop till you get there.
Bo Jackson0 -
The flaw in your argument though conrad is people can't get on the housing ladder now because house prices are STILL too high.0
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shortchanged wrote: »The flaw in your argument though conrad is people can't get on the housing ladder now because house prices are STILL too high.
Proove it. Tell me in which general locale a reasonably priced property cannot be purchased by a FTB.0 -
Thrugelmir wrote: »The MMR is still going to be published in early 2012. So no doubt there will be tighter regulation in some form.
I'm confident I will be proven right on this. Sometime within the next 2 or 3 years FSA retail mortgage regulation will be significantly cut back.
Tougher regulation means a few thousand less repos, but millions effectively barred from ownership and forced to rent.
Society is supposed to be a meritocrasy where ALL of us can expect to be able to access basic fundamental rights such as property ownership.
The pap line about 'thats what got us into this mess' bares no scrutiny. Overall the UK mortgage market was pretty ordered with low repos.
I'm not saying a return to the wild west, but we do need a massive dose of common sense back in the sytem or we will not get the general economic positive sentiment much needed.0 -
wherediditallgothen wrote: »I'm sure they get ranty letters like that all the time. Don't see it making a blind bit of difference other than getting your name on some sort of 'watch list' somewhere.
Wow I really wasn't expecting this response:rotfl:
I find persistence can make a difference. If we all sit on our hands, nothing ever changes. I already had a fair response from my own MP who took it up with the Treasury.
I'll keep it at thanks:beer:0 -
Wow I really wasn't expecting this response:rotfl:
I find persistence can make a difference. If we all sit on our hands, nothing ever changes. I already had a fair response from my own MP who took it up with the Treasury.
I'll keep it at thanks:beer:
Perhaps you'd like to follow what they're saying about you over on this forum....
Mortgage Broker Begs Mr. Redwood For Less Regulation"The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0 -
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Perhaps you'd like to follow what they're saying about you over on this forum....
Mortgage Broker Begs Mr. Redwood For Less Regulation
Fame at last:beer:
Will you be my spokesperson on HPC?0 -
Radiantsoul wrote: »Why don't you use the signature that states you are a mortgage broker?
Because I seek no business from this site and do not invite any PM's. I'm merely here for the ride.:D0
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