Can TPAs survive the downturn?
The mortgage market has changed hugely since the seismic shocks of 2007/8 and it is not just lenders and borrowers who are experiencing a very different playing field from that which existed before the crash. Consider the plight of Third Party Mortgage Administrators (TPAs) who between 2000 and 2006 gorged themselves on a regular supply […]
Failure to mitigate loss?
Anyone involved with the post completion mortgage administration process will be acutely aware of the pressures to show ‘forbearance’ to borrowers who are facing difficult times. However, many involved in the industry will have been surprised at the level of ‘forbearance’ being applied by lenders. Data collated by the FSA and contained within the recent […]
Relevance of experts’ experience
The lending market has gone through immense changes over the past thirty years; the launch of centralised lending in the eighties, new specialist and sub-prime lenders in the nineties and the demise of most of them in the past five years! The impact new lenders had on the market place has also been significant, with […]
International mortgage underwriting practices
On the 26th October 2011 the Financial Stability Board (FSB) issued a paper for public consultation, titled ‘Principles for Sound Residential Mortgage Underwriting Practices’. The FSB was established to co-ordinate at international level the work of national financial authorities and international standard setting bodies and to develop and promote the implementation of effective regulatory and […]
Scullion v Bank of Scotland Plc – our view
On a superficial reading the recent Scullion v Bank of Scotland Plc (t/a Colleys) [2011] EWCA Civ 693 decision may appear to have little relevance to lender/valuer professional negligence claims as the case related to a consumer litigating against a valuer. However, it is our view that the decision could impact on lender/valuer disputes and […]
Mortgage forbearance and impairment
On the 5th October the FSA published its final guidance on forbearance and impairment provisions following consultation and review of lenders arrears processes. The review was designed for the regulator to understand forbearance strategies used by lenders, identify good and bad practice and ensure that clear and transparent reporting was in place. The results of […]
Interest only back books
The FSA announced, in the most recent “Retail Conduct Risk Outlook 2012” review, that a thematic review is about to be commenced. Their concern is that in the medium to long term, the outstanding balances, as well as the LTV percentages of these maturing mortgages, are expected to increase significantly. It is hoped that the […]
Is forbearance finished?
Paul Diggle at Capital Economics recently tried to quantify how important a role forbearance has played in propping up the UK housing market. He estimated that without lenders – leniency, arrears and repossession could be double the current rate. He also suggests that had banks been less forgiving, then the proportion of mortgages currently three […]
Regulation of Credit Rating Agencies
The European Mortgage Federation (EMF) has recently reiterated their support for the European Commission (EC) proposal to amend the Regulation on Credit Rating Agencies (CRAs). In particular it supports the measures designed to reduce the risk of conflicts of interest and measures aimed at enhancing the quality and transparency of ratings. However, the EMF is […]
Risk Identification
When driving a car it’s obvious that you need to keep your eyes on the road ahead, but it’s a poor driver who does not look in the rear view mirror from time to time or learn from past driving experiences. Similarly within the mortgage industry we are all focused on the way ahead, hoping […]
