FSA Mortgage Conference

Andrew Strange - AMI Policy Director - 12th May 2009 - 15:38

As I head up to Leeds to host an AMI Director's Dinner this evening, I have time to ponder the first half of FSA's conference.

 It has been no secret that FSA intended to review MCOB (the only remaining rule book not given the Principles Based Regulation overhaul).  What is telling is that MCOB may never get that privilege, instead becoming the first rule book to be 'outcome-ised' instead.

The conference opened with a typically accurate analysis of FSA's thinking by Chairman Lord Turner.  His consideration of macro issues - and his insightful analysis of the causation and interaction thereof - again demonstrated his grasp of his new role.

Preliminary issues discussed included the widely publicised concepts of limiting loan-to-values and/or loan-to-income multiples.  He also highlighted the potential role of capital as a driver in the lending arena and the social issues posed by a public policy agenda that has encouraged wider home ownership.

However, he was at pains to stress that he felt exuberance was not likely to return to the market soon, and that there was time to do this right. 

The formal Discussion Paper is due in September. AMI is already engaged and will remain so.