|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |   
Monday 09th of March 2009
March 8, 2009

AFB demands action on second mortgage market


by Gill Montia
AFB demands action on second mortgage market

The Association of Finance Brokers (AFB) is lobbying the Government to better regulate the second and subsequent charge residential lending market.

Second charge loans, known as “homeowner loans”, involve consumers with existing mortgages taking out further personal borrowing, secured against their home.

A recent publication from the Office of Fair Trading proposes new guidance for the sector.

However, the AFB, which says it exists to present the views of its members to regulators and policy makers, is looking for a strong response.

The body is urging the Department for Business, Enterprise and Regulatory Reform to bring the sector under the regulatory regime of the Financial Services Authority (FSA), claiming that a consultation of its members last year showed overwhelming support for such a move.

AFB director, Robert Sinclair, believes the OFT’s latest proposed guidance could be replicated within the Mortgage Conduct of Business regime of the FSA.

Mr Sinclair adds that this would benefit intermediaries, lenders and consumers because it would “allow the impending implementation of the European Consumer Credit Directive to be limited to unsecured credit, while providing an alternative, robust regime for second charge lending”.

Discuss this in the Finance Markets forums

Story link: AFB demands action on second mortgage market


Add to Bookmarks:

ADD TO DEL.ICIO.US     ADD TO DIGG     ADD TO FURL

ADD TO STUMBLEUPON     ADD TO YAHOO MYWEB     ADD TO GOOGLE     ADD TO SPURL

 

Tags: AFB, Association of Finance Brokers, FSA regulation, , , second charge, secured

 

Previous: « Wolseley leads losers on 100
Next: New online tool for greener households »

Visited 187 times, 82 so far today