David Elms, chief executive at IFA Promotion (IFAP), has suggested that the mortgage industry does not necessarily require more regulation, as the Financial Services Authority (FSA) carries out investigations into the mortgage market.
A review of the sub-prime market is set to be part of the investigation, as it is believed that some brokers were recommending sub-prime mortgages to those who could qualify for a prime mortgage.
But Elms insisted that tighter regulations in the mortgage sector were unnecessary, suggesting it was now as regulated as the pensions and investments market: “I can see the process that the pensions and investments sector has gone through to rise to the standards required of it over the last 18 years. It seems to me that there is still some learning to go on as far as the mortgage sector is concerned.It’s not so much that they require more regulation, necessarily, it’s the fact that they adapt to and are applying and living sustainably with the regulation that already exists.”
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