Mortgage finance working group launched to advise government
April 12, 2008 by admin
Filed under News, News-Mortgages
A group of industry experts has been established to provide advice to the government on how to improve the function of mortgage finance markets.
The group has been formed in response to the complex issues raised about the functioning of the mortgage-backed securities markets due to the ongoing crisis affecting global financial markets.
Its first job will be to assess the current state of the mortgage finance market.
Led by former HBOS chief executive Sir James Crosby, the working group will draw on the experience of lenders, investors the Treasury, the Bank of England and the Financial Services Authority.
Chancellor Alistair Darling said that the group’s “work will be an important contribution to stabilising the cost and supply of UK mortgages”.
Earlier this week, the news editor of moneywise.co.uk said that although there is still demand for new mortgages at the moment, it is difficult to tell whether it will last.
Rebecca Atkinson said that First Direct’s decision to stop selling mortgages to new customers shows that mortgage lenders are suffering from liquidity problems and also trying to attract good-quality borrowers rather than a high quantity of customers.
