The FSA will regulate second-charge loans, sale & rent back and mortgage back book administration in a bid to improve consumer protection, the government confirmed today.
Ministers hope passing responsibility for the residential mortgage market to the FSA will simplify mortgage regulation for consumers and lenders. Regulation of new and existing second charge residential mortgages will move from the Office of Fair Trading (OFT) to the FSA. Portfolios of mortgage loans will also be regulated by the FSA, which the government hopes will maintain the service standards for consumers if their loan is sold on to another lender or unregulated firm. The FSA also plans to extend the current regulation of the sale and rent back (SARB) market to all providers, ...
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