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Safer future for mortgages

10 May 2004
Industry bodies have said that the future of mortgage lending looks safer for consumers as new regulation is widely adopted.

The Council of Mortgage Lenders (CML), Association of Mortgage Intermediaries (AMI), and Intermediary Mortgage Lenders Association (IMLA) have all said the Mortgage Compliance Code signals an important step on the road to statutory mortgage regulation.

The transition to this regulation is going smoothly, and the Mortgage Code Compliance Board (MCCB) has confirmed that nearly all lenders and intermediaries have now renewed their registration with the Board up to the end of October.

Additionally, the Financial Services Authority has said it has issued over 800 letters to firms seeking mortgage authorisation, and that it has received 3,684 applications for direct mortgage authorisation.

Michael Coogan, CML director general, welcomed the news, saying: "The MCCB has continued to demonstrate how effective it is by continuing to achieve near-universal registration from the industry in its final six months."

This news, Mr Coogan says, means that it "safeguards consumer protection under the Mortgage Code in the run-up to the beginning of FSA regulation from 31 October."