Mortgage Expo: Securitisation 'may never recover' from credit crunch


Securitisation as a mortgage funding method might never recover from the current credit crunch, according to Jackie Bennett, head of policy for the Council of Mortgage Lenders.

Much of the sub-prime market is based on debt securitisation, where prime and sub-prime debt is repackaged and sold to investors, and the CML believes many sub-prime borrowers will suffer difficulties. Speaking at the Mortgage Business Expo in Manchester, Bennett revealed the bulk of 2008’s repossessions are likely to come from the sub-prime sector, particularly those with heavy adverse credit ratings. The CML is currently expecting funding positions will recover within the next 18 months, helping to break the current deadlock in interbank lending. “However, the securitisation process mi...

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