Mortgage market needs reform, FSA says

Mon, 16 Nov 2009

The Financial Services Authority (FSA) has claimed that the structure of the mortgage market which helped cause the credit crunch needs to be reconsidered.

Jon Pain, managing director of supervision at the regulatory body, spoke at the Council of Mortgage Lenders' Annual Conference about how lending practices "failed for a significant minority".

It was explained that the FSA's review of the mortgage market, released last month, aimed to propose a solution to the problem through a reduction of unaffordable loans, arrears and repossessions .

Mr Pain said: "Just as a house requires solid foundations to be long lasting, mortgages need to be based on a proper assessment of affordability if we are to have a sustainable market."

Research from the Building Societies Association recently revealed that more people are able to take out a mortgage as lenders are becoming more optimistic about the environment.
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