Yes, I agree, wer certainly want different regulation of the financial markets….which doesn\’t necessarily mean more. Just different. But this isn\’t perhaps the right regulation:
The Financial Services Authority revealed plans to ban the practice last year as part of an effort to tighten up lending standards and \”help protect consumers from themselves\”. The regulator wants banks to ensure that borrowers do not overreach themselves when taking out a mortgage.
Banning self-certification and making income verification mandatory was one of the FSA\’s flagship proposals, but \”large lenders and large intermediary networks in particular disagreed\”, it emerged on Tuesday in industry feedback to the mortgage market review.
My own UK mortgage is a self cert….it\’s even a self cert buy to rent one. As such the size of the loan was determined by what the rental income could be, not my income. Thus a low value to loan ratio (something like 55% as I recall).
Why banning this would make the markets safer I\’m really not sure at all.