Monday, 19 October 2009
Well, you wanted more regulation...
Homebuyers face questions on alcohol and smoking under new mortgage rules
(I guess those who advocate more pre-emptive regulation forget that government always finds it easier to 'crack down' on ordinary people than on their cronies in big business...)
Homebuyers could be forced to provide detailed information about the amount of money they spend on alcohol each month to qualify for a new mortgage under a new clampdown on reckless lending.
In a sweeping review of the mortgage market published today, the Financial Services Authority (FSA) said lenders needed to be far more rigorous about their financial checks of potential borrowers.
It said lenders should delve deeper into homebuyers' personal spending including the amount they spend on alcohol and tobacco.
Spending on shoes, clothes and childcare could also be assessed under a new, industry-wide "affordability test".
At present, the FSA does not prescribe rules about assessing a consumers' ability to repay a mortgage and practices vary from one lender to the next.
In its document, the City regulator said: "There is clearly a responsibility on all lenders to extend credit only where a consumer can afford it and, in our view, a robust assessment of both income and expenditure is key to ensuring affordable mortgages.
"We propose to require all lenders to assess the level of a consumer's expenditure in determining the affordability of a mortgage product, to ensure that lending decisions are based on a consumer's free disposable income."
It conceded though that there were some flaws with its plan with consumers potentially underestimating their spend or "failing to incorporate past experiences into their budgeting".
The new measures, which aim to stamp out risky lending that has been criticised for compounding the financial crisis and tipping hundreds of thousands of homebuyers into negative equity, also include a plan to ban self-certified mortgages, dubbed "liar's loans”, and to stop lenders from exploiting consumers who have fallen behind on their mortgage payments.
It also proposed that the FSA should regulate mortgages for landlords for the first time.
Self-certification mortgages were aimed at self-employed people with irregular incomes. The mortgages, which did not require proof of income, accounted for one third of new loans in 2007. Their proposed banning was first revealed in The Times last week.
But the FSA stopped short of ruling out "supersized mortgages" by introducing caps on loan-to-value, loan-to-income or debt-to-income multiples.
Such mortgages were typified by Northern Rock which, at the height of the housing boom, offered 125 per cent home loan deals.
Gordon Brown wrote in a newspaper article at the weekend that it was "critical we end reckless banking practices that have left so many people worried about their finances".
Jon Pain, managing director of supervision at the FSA, said: "The mortgage market has seen extraordinary upheaval over the past 18 months and while it has worked well for the vast majority of borrowers, some have suffered great financial distress. We recognise that we need to bring about a step change in regulation."
He said there had been a "mutual assumption by too many borrowers and lenders that the good times could not end."
The new reforms, he said, would ensure firms "only lend to people who can afford to pay back the money".
Isn't it odd how every solution to the problems these bastards created, is more use of bureaucracy against the ordinary people? What a coincidence.
- ► 2010 (647)
- Who did WHAT to the Audit the Fed Bill?
- New Flu Stories: Best of the Worst
- Your TV Licence money at work: Pravda UK
- UKIP make the EU Parliament interesting
- Obama's Daughters get H1N1 Vaccine (Yeah Right!)
- I actually support the postal strikes
- Make Your Own Flu Vaccine!
- Doubt I'm the only Brit annoyed at this CO2 ad
- Fall of the Republic - the Presidency of Barack H ...
- Cartoon: "Yellow Cake"
- The Wizards Behind Dr Oz's H1N1 Vaccine
- Danger: Pop Culture Within (Sunderland v Liverpool...
- This is why 9/11 truth still matters
- Well, you wanted more regulation...
- Nobody's Buying It
- Muse - MK Ultra
- Obama caught reading "The Post-American World"
- Context to this HG Wells NWO quote
- GE Profits Fall - time to hit Iran?
- Associated Press are Birthers; Should you be?
- Swine Flu Jabs Start Next Week
- Remind you of the Obama Peace Prize?
- Flu Vaccines: "greatest quackery in history of mod...
- I can't believe I'm saying it, but...thank you BBC...
- No more: I removed those bloody foetus pictures
- Deflation: Good For You, Bad For The State
- You Could 'Havidol', Too
- Record Low Antarctic Ice Melt
- Chinese Eat Aborted Baby Soup
- Iraq, Iran and the Petro Dollar: History Repeats
- Ron Paul on the Nobama Peace Prize
- No Translation Required - the Iranian Threat
- Doctor: What You Were Never Told About Vaccines
- Bloodthirsty Obama gets Nobel Peace Prize
- The only real national leader on the planet is...
- Rage Against The Machine: Testify
- Fall of the Republic - trailers
- 'War On Drugs' in Afghanistan?
- Internet 'game' where people report real CCTV crim...
- Fluoride: A Professional Perspective
- Grim Reaper says "Get your flu shot!"
- House Slave Manual
- I'm from the IMF, and I'm here to help.
- O'Reilly vs Napolitano on Iran
- Lisbon: the best Yes vote money and lies can buy
- Irish vote on Lisbon today...
- More Ron Paul stuff
- ▼ Oct 2009 (47)
And You Tell Me There's No Suppressed Technology?
It's another of those 'conspiracy theories' that good citizens don't notice. Imagine the standard of living if all the secret technology was released to the public...we'd be "free and independent" as JFK said! No more poverty anywhere! Can you imagine being sick enough to withhold such technology from society just to maintain your position of control? (Bearing in mind that we don't know just how much technological capability is being withheld, because, duh, it's secret.) What did Nikola Tesla really develop?
Individual Liberty? But that's "selfish"!
No, we need to look after each other voluntarily without having a government do all that at gunpoint. Sounds absurd at first but soon you realise that the reason it sounds so is because of the very unfree nature of our current existence. Envision greater possibilities! Ok, some kind of massive wake-up would be needed before this kind of free, responsible, uncontrollable society could emerge. And that's what we are seeing day by day in the world - a massive waking up of the previously enslaved masses (including myself I must add!)