Better mortgage future pledged
A senior member of the Financial Services Authority (FSA) has said
that the future of the mortgage industry will be a better one if
the right changes are made.
Speaking today at the Council of Mortgage Lenders' (CML) annual
conference, FSA retail markets managing director Jon Pain said the
mortgage system of the future will be "unlikely" to resemble that
which existed until recently.
He added that "big issues" will need to be addressed but said he
believed the CML is "willing" to help the FSA achieve the right
kind of change.
This will involve a shift to a system "where lenders have adequate
liquidity, funding and capital; there are strong systems; and
customers enjoy the benefits of a vibrant market but are not
exposed to unnecessary risk", Mr Pain concluded.
Successfully encouraging banks to lend again is a vital
pre-requisite to economic recovery and without it the recession
will be more severe than otherwise, Bank of England governor Mervyn
King told the Treasury select committee at Westminster last