The Financial Secretary to the Treasury, Mark Hoban, has 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 OFT to the FSA.
Hoban says he is also seeking ensure consumer protections are maintained when a mortgage book is sold by a mortgage lender to an unregulated firm. and to extend the current regulation of the sale and rent back market to all providers, to ensure appropriate protection for consumers.
He said: “The government believes that this package of measures will enhance protection for consumers in the mortgage market. Giving the FSA responsibility for the whole residential mortgage market will simplify the mortgage regulation landscape for consumers and lenders. This will ensure that existing second charge mortgage borrowers who fall into arrears or face repossession on both first and second charge mortgages benefit from being regulated by a single organisation
