CML attacks sub-prime report

Posted: 13 Dec 2007 10:51:06 GMT


            Property News - CML attacks sub-prime report

The Council of Mortgage Lenders (CML) has slammed a report from Citizens Advice, which accused the sub-prime mortgage industry of acting irresponsibly.

The Council of Mortgage Lenders (CML) has slammed a report from Citizens Advice, which accused the sub-prime mortgage industry of acting irresponsibly.

Michael Coogan, director general of the CML said that the report is "sensationalist" and suggested that the evidence used was based on a skewed sample of borrowers.

The report took on the opinions of people who have sought help from Citizens Advice and the CML pointed out that these people are more likely than most to have experienced problems.

"Citizens Advice has taken a sensationalist tone in this report, which risks throwing the baby out with the bathwater. In fact, sub-prime mortgages give people a way to rehabilitate their finances and are important in a financially inclusive mortgage market," said Mr Coogan.

"It is vital to recognise that the overwhelming majority of mortgage borrowers are meeting their payments in full and on time.

"This report is in no way typical of the vast majority of cases where lenders work constructively with borrowers to get them over periods of financial difficulty and keep them in their homes," he continued.

The Intermediary Mortgages Lenders Association also slammed the report, accusing it of making "sweeping generalisations".

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