FSA reforms 'would have meant 4m fewer mortgages'

As part of its response to the regulator's Mortgage Market Review (MMR) consultation paper, the CML assessed what impact the proposals would have had if applied five years ago. It suggests some 51%, or 3.8 million, "good loans" - those that have never suffered payment problems - would potentially not have been made, while an estimated 151,000 arrears and 38,000 repossession cases might not have occurred. The FSA is proposing major reforms to end excessive loans and crack down on interest-only mortgages. It also wants to impose more rigorous financial checks on applicants. The CML s...