31 October 2012

The Financial Services Authority (FSA) has created new guidelines to ensure lending is responsible.

The Mortgage Market Review has been carefully considered as the FSA looks to ensure it isn’t restrictive and can be put into practice.

To make sure that lending is responsible the new regulations have been focussed on affordability for the borrower and authentication for the lender.

Director General of the Council for Mortgage Lenders (CML), Paul Smee commented on the CML’s website that: "Today's rules bring certainty. Lenders can now make firm plans to ensure that they meet the new requirements when they formally come into place in April 2014. In practical terms, the regulatory changes have already been widely anticipated and so are unlikely to create any significant additional or unexpected impacts.”

"We look forward to working towards implementation with the FSA and its successor, the FCA, and hope that from a supervisory perspective the regulator will focus just as much on helping lenders and brokers to meet regulatory expectations as on enforcement action if rules are broken."

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