CML: Should lenders always verify income - and the £300 billion funding gap
Tuesday, 2 February 2010
12:00 AM
Must a lender always be required to verify the income declared by a borrower when applying for a mortgage? For some, it's an instinctive answer. But in our considered response to the mortgage market review, we argue that the FSA can only get it right if it ignores the kneejerk response, and analyses - carefully and dispassionately - all the pros and cons.
Last week, meanwhile, there was some more good news on mortgage securitisation with a deal by the Lloyds Banking Group. But we are calling for concerted action to address a looming £300 billion mortgage funding gap. It will be a major challenge for the new government if it wants to avoid mortgage rationing for many years to come.
Visit our website to read the latest issue of CML News & Views
Bernard Clarke
Council of Mortgage Lenders
tel: 020 7438 8923
website: www.cml.org.uk
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