UK Government announced package of measures to enhance consumer protection in the mortgage market
26 January 2011
Mark Hoban, Financial Secretary to the Treasury, said that giving the FSA responsibility for the whole residential mortgage market will simplify the mortgage regulation landscape for consumers and lenders.
The Financial Secretary to the Treasury Mark Hoban announced a package of measures intended to enhance consumer protection in the mortgage market. These measures will:
- transfer the regulation of new and existing second charge residential mortgages from the Office of Fair Trading (OFT) to the Financial Services Authority (FSA), to ensure consistent standards of consumer protection and simplify the regulatory environment for lenders and borrowers;
- ensure consumer protections are maintained when a mortgage book is sold by a mortgage lender to an unregulated firm; and
- extend the current regulation of the sale and rent back market to all providers, to ensure appropriate protection for consumers.
The statutory instruments will be published later in 2011. In advance of this, the Government expects the FSA to begin work immediately to implement these measures.
© HM Treasury
