Lord Turner of the FSA said today that he believes Self-certified mortgages should be banned and perhaps bonuses too. He is to tell Future of Finance conference that bank bonuses must be addressed as we need a significant change in approach to regulating loans
The UK should consider reducing the availability of loans to households and businesses to create a more stable economy, the regulator said tonight as he prepared to ban “self-certified loans” used by the self-employed.
Turner also set out a plan for structural reform in regards to the issue of credit that had become too easily available during the boom and too hard to obtain in the bust. He in known for once having said that parts of the financial system were “socially useless”. He is also against City bonuses. 
The FSA has decided against an idea raised in the mortgage market review discussion paper last year to set a maximum loan-to-value ratio on mortgages. Such a move would have ended mortgages worth 100% of the property’s price.
Lord Turner also asked whether the new body should be able to ban specific products as “inherently undesirable”, saying its creation should provide a “major opportunity” to make the most informed choice.
He was quoted as saying “We are signalling a significant change away from that approach, but the shift is not a purely technical issue which can be left to technicians; it is a social and political choice which should merit extensive debate.”
What do you think? Surely it’s up to US to decide whether we can afford credit or not? Will we soon be following some US states and banning some types of loan (Payday Loans & Advances etc) Do we need a Lord to tell us?
This is not a correct decision, Because every one get some affect.. so i hate this decision..
just came up with this blog while googling
I think the fsa should just keep there noses out
What are the disadvantages of self certified mortgages? Is it good for business?
This is decision 。。i am not Approve ..
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