CML welcomes publication of FSA rules on sale-and-rent-back
Friday, 29 January 2010 12:00 AM
The Council of Mortgage Lenders welcomed today's publication by the Financial Services Authority (FSA) of new rules and guidance to provide full protection for consumers in the sale-and-rent-back market.
Lenders have for some years campaigned for statutory regulation to improve protection of home-owners who may be considering sale-and-rent-back as a means of dealing with mortgage arrears.
Lenders welcomed the FSA's decision to move quickly to introduce interim regulation of sale-and-rent-back last July to tackle the most immediate issues. Now the FSA has published details of the scheme for full statutory regulation from 30 June 2010.
Commenting on today's FSA announcement, the CML's director general Michael Coogan said:
"We are pleased to see FSA pressing ahead with its plans to reinforce protection in an area where there has clearly been potential detriment for borrowers in arrears. Rules guaranteeing security of tenure for five years and banning cold-calling by sale-and-rent-back firms are particularly welcome.
"Borrowers in arrears should always continue discussing their problems with their lender, who will work to devise a solution depending on their individual circumstances. There are likely to be a number of options for them other than sale-and-rent-back, but it is re-assuring that borrowers who may still wish to consider this option will be better protected."
NOTES TO EDITORS
1. Further details on the FSA's new rules and guidance to provide full protection for consumers in the sale-and-rent-back market can be found on the FSA website:
http://www.fsa.gov.uk/pages/Library/Communication/PR/2010/016.shtml
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