CML calls for clear government mortgage policy

Date:Thursday 4th November 2010
Author: Max Freedman

The government needs to be clear about what sort of housing policy it wants to pursue, according to the Council of Mortgage Lenders (CML).

Michael Coogan, director general of the institution, explained that the state must decide if it wants to ensure the most vulnerable people are protected or if it would like to fuel the majority's aspirations in this area of life.

"They can do both by allowing free access to the market to responsible borrowers, but establishing an effective safety net for the few who have difficulties," he noted.

Mr Coogan suggested the government - and the Financial Services Authority (FSA) in particular - needs to be clear about policy before any new mortgage regulations can be introduced.

In his opinion, the FSA is currently too focused on conduct risk strategy.

This week, the FSA stressed the importance of its Mortgage Market Review, stating there are certain failures in the system that need to be addressed in order to ensure responsible lending in the future.