Treasury and FSA have responded to the Commission on two aspects of the mortgage markets:
- on foreclosure: the response to the foreclosure questionnaire sets out the MCOB rules on residential mortgage possessions;
- on responsible mortgage lending and borrowing: this explains the work done in the UK mortgage markets and the differences between the UK and EU markets and the US housing markets that were a key factor in the financial crisis. It explains the aims of the Mortgage Market Review and its views on possible grounds for intervention. Treasury and FSA do not believe there is currently a case for intervention at EU level.
(Source: UK response to European Commission foreclosure questionnaire July 2010 and UK response to EC working paper on Responsible Mortgage Lending and Borrowing)