Mortgage Arrears and Access to Mortgage Finance

Mortgage Arrears and Access to Mortgage Finance

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This report focuses on households affected by the recession, struggling with mortgage arrears or at risk of repossession. The role of the Financial Services Authority (FSA) is also scrutinised. The report notes that both mortgage arrears and repossession levels are on an upward trend and that both are expected to continue rising over the next few years as a result of the recession. The Committee acknowledges that many mainstream lenders are taking pro-active steps to support consumers in mortgage difficulties, but expresses concern at the lack of flexibility and forbearance shown by some lenders in the sub-prime, specialist and second charge sectors towards homeowners in arrears, and the fact that some lenders are charging high and excessive mortgage arrears fees to customers who fall into mortgage difficulties. The FSA should take a much more robust stance towards tackling and eliminating unfair arrears charges. The report criticises the seemingly leisurely approach of the FSA in terms of completing its mortgage arrears review and enforcing possible breaches in the mortgage arrears rules. It calls upon the FSA to spell out clearly in its forthcoming review how it will improve its performance in terms of bringing miscreant firms to book. The report recommends that the Government re-examine its longer-term strategy towards supporting homeowners in mortgage difficulties to ensure that adequate mechanisms to support homeowners are in place even once the current downturn has ended.Tuesday 30 June 2009 Page Kay Boycott, Director of Communications, Policy and Campaigns, Shelter, Sue Ev 1 Edwards, ... CBE, Financial Services Secretary, HM Treasury and Rt Hon John Healey Ev 33 MP, Minister for Housing, Department for Communities and Local Government ... Housing Federation Ev 108 14 Consumer Credit Counselling Service Ev 1 1 1 15 Home Saver Ev112 16 Finance andanbsp;...

Title:Mortgage Arrears and Access to Mortgage Finance
Author:Great Britain. Parliament. House of Commons. Treasury Committee, Great Britain. Parliament House of Commons
Publisher:The Stationery Office - 2009-08-08


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