FSA cracks down on 'weak' sub-prime firms


The FSA has begun enforcement proceedings against five intermediary firms in the sub-prime mortgage market after finding "weaknesses" in lending practices and in firms' assessments of a consumer's ability to afford a mortgage.

An FSA report on the sub-prime mortgage market, published today, examined 11 lenders and 34 intermediaries and tracked 90 customer files from the point of contact with an intermediary though to the lender's decision. According to the report, several issues have arisen for intermediaries and lenders when selling to sub-prime customers. Clive Briault, managing director of retail markets at the FSA, says: "We are very concerned about these findings. "Consumers in the sub-prime market are vulnerable people who may have high debts or a bad credit history. It is therefore important that they a...

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