Surely not! I heard that the SFA, the failed banking regulator, are proposing that in future banks and other lenders we be responsible if borrowers are not able to continue paying off their mortgages?
Was this the regulator who stood by while some lenders offered 120% mortgages, some of which were six times annual incomes of the borrowers?
So, because the SFA failed to do its job properly, in neglecting to warn lenders of the riskiness of their policies, or even of their whole business model in the case of Northern Rock and others, they are now saying to lenders, "You must carry out full diligence checks, and if for some reason there is a default then you alone will suffer."
I can imagine potential borrowers jumping with joy at this free insurance, and beginning to plan how they can conceal their real financial position.
I can also imagine the market for mortgages drying up, and house prices falling, which nobody wants, except protected buyers!
In a word, crazy, but perhaps I was having a bad day when I heard it all!
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