U.K.'s Financial Services Authority (FSA) said it is conducting a wide-ranging review of all aspects of its mortgage regulation, and plans to publish its proposals this fall.
The wide-ranging review, which encompasses issues from securitization to arrears, is being conducted to establish what went wrong in the mortgage market, to fix those problems, and to ensure the presence of a sustainable, long-term market.
The FSA said it will take a hard position on firms proven to have acted poorly. It will also bring its sanctions to bear against rule-breaking firms, tackle these firms' unauthorized business, and will ensure mortgage consumers are treated fairly.
The FSA said it will respond in full to the Treasury Select Committee’s report on mortgage arrears and access to mortgage finance in due course.
The committee previously voiced concern over the amount of time the FSA has taken to respond the report, which was released over the weekend, and to name firms whom it is taking action against. This implies, according to the committee, that the FSA is trying to protect lenders.
John McFall, chairman of the committee, said he is shocked at the length of time it is taking the FSA to complete enforcement action against firms it suspects are breaking the rules, and that the FSA “must raise its game on the enforcement front and demonstrate that it can take action speedily and decisively where wrong doing is taking place.”