ASTL warns of MMR dangers to short-term sector

ASTL warns of MMR dangers to short-term sector




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The Association of Short Term Lenders (astl) has drawn the short-term lending sector’s attention to the FSA’s Mortgage Market Review Discussion Paper and the dangers of not having a co-ordinated and comprehensive response to it. 

 

astl Chief Executive Adrian Bloomfield said: “The Discussion Paper sets out proposals on many essential matters including capital adequacy and the entire manner in which short-term loans are sourced, underwritten and handled. There is further emphasis on the FSA’s requirements for treating customers fairly. If all the proposals are introduced without challenge or amendment they could have a most serious and potentially detrimental impact on the specialist short-term and bridging loan sector.”


The astl contends that it is vital that all of its members and other short-term lenders appreciate that the Discussion Paper needs to be fully considered and responded to, so that the views and concerns of short-term lenders are heard and taken into account. 

 

To this effect the astl, which has a dialogue with the FSA, has set up a working party which includes advisers to prepare a response to be submitted to the FSA in January.


Mr Bloomfield added: “We intend to build on our good relationship with the FSA and to make a detailed submission in response to their Discussion Paper to ensure that the unique requirements and factors of short-term lending are recognised and, wherever possible, incorporated under any future mortgage regulation regime.”

 

He went on to say that the astl welcomes input from lenders, who are non members, wanting to add their weight to the debate.

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