BSA and the Council of Mortgage Lenders (CML) have responded to FSA's consultation on mortgage arrears and approved persons. BSA thinks:
- rule changes alone will not protect customers who are in arrears. FSA must support any changes with robust supervision and appropriate enforcement action; and
- FSA should wait for the outcome of its planned general consultation on selling standards before changing the Approved Persons regime. Otherwise it risks needing to make changes soon after introducing its proposed new rules.
- some changes will entail significant systems changes for lenders and FSA should bear this in mind when setting a timetable;
- FSA must make sure it gets the detail right;
- it would help if FSA explained to consumers what they could do to help themselves and not give the impression lenders should forbear at all costs; and
- FSA has not properly recognised the different roles played by staff in the lending and intermediary sectors when it made its proposals for extending the Approved Persons regime.
(Source: Press Release and Responses)