Mortgage Industry Comes Under FSA Regulation
Financial Services Authority today assumes responsibility for regulation of the mortgage industry, with repercussions for brokers and lenders
1st November 2004
Today sees the first day of statutory regulation for the mortgage industry. While mortgage sellers, lenders and brokers formerly operated under a voluntary code of practice (the mortgage code), anyone involved in the mortgage industry now needs to be directly authorised by the Financial Services Authority (FSA).
The increased regulation has come about in part because of the endowment mis-selling scandal of recent years, and the new rules require that much clearer information be given to a prospective mortgage buyer - they must be given the bad points about a mortgage as well as the good points.
The FSA has so far authorised over 7,000 companies to continue to trade in the mortgage business, while over 200 firms have either closed down voluntarily or been rejected by the FSA.
Read More: FSA
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