United Kingdom: The Financial Services Authority (FSA) has today outlined proposals to ensure all mortgages are carefully assessed to make sure borrowers can afford them. Reflecting the FSA’s enhanced consumer protection strategy and intensive day-to-day supervision, the proposed changes aim to ensure all lenders get back to the basics of responsible lending and that problems are prevented before they can develop or get out of control. 

BIIA Comment: In identifying the culprits of the subprime crisis a lot of blame was piled upon the rating agencies, but relatively little was said about irresponsible lending, outright fraud, misrepresentation and the failure of regulators to act.  The proposals of the FSA reflect the age old maxim that information and credit are intertwined, one does not go without the other.  For bankers and consumers it will be a return to common sense.  

BIIA Newsletter July I – 2010