Council of mortgage lenders issues mortgage funding blueprint
July 16th, 2008 by 
Guy
The Council of Mortgage Lenders (CML) has drawn up a blueprint to sort out the lack of funding in the mortgage market.
The documents have already been submitted to the Treasury and the plan could possibly help to significantly reduce the downturn in the housing market.
A spokesman believes that a quick implementation of the mortgage market funding proposal would be of great help, the UK Government could mitigate the difficulties that households and the housing market will otherwise face, as well as helping to restore confidence in the financial system as a whole.
The action plan is essentially a way of starting the markets for UK residential mortgage backed securities (RMBS) and covered bonds (CBS) back into life. These are parts of the market that have been non existant since investor appetite disappeared in the wake of the recent credit crunch.
A spokesperson for the CML said that, If they act quickly, there is an opportunity here for the Government and the Bank of England to break the crisis in the housing and mortgage markets and create confidence in the financial system again. The biggest issue in the housing market currently is the need to address the lack of available funding to support new mortgage lending.
Posted in Mortgage news | 
July 16th, 2008 at 1:59 pm
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