The FSA's report into the sub-prime mortgage market, which resulted in the regulator taking action against five intermediary firms for ‘weaknesses' in their advice procedures, has been largely welcomed by the mortgage industry.
The report found that while there were few problems in sub-prime lending to prime customers, there were several issues of concern when selling products to consumers with poor credit ratings. The Council of Mortgage Lenders has welcomed the findings and has promised to help members to improve their responsible lending policies and ensure that they are applied in practice. Michael Coogan, director general of the CML, says: “The sub-prime market has an important role to play in helping people with past credit problems to rehabilitate their finances. But we acknowledge that, in particular, l...
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