19
Dec
Implement Crosby recommendations now, says AMI
The Association of Mortgage Intermediaries (AMI) has called on the
government to swiftly implement the recommendations of the Crosby
report into mortgage finance.
AMI director Robert Sinclair said: "Sir James [Crosby] set out some
practical proposals for the market, which included government
guarantees of new mortgage securities. This move would help to ease
the future funding of mortgage loans."
He added that it is "essential" that this occurs in order to bring
about a "reasonable" level of mortgage lending next year.
While warning of the need for the government to take action, the
AMI expressed surprise at the level of "pessimism" expressed by the
Council of Mortgage Lenders (CML), which has predicted a fall in
the amount of lending from £258 million this year to £145
million in 2009, arguing that it is unlikely the level of lending
will drop so low.
The CML based its forecast on the theory that a combination of low
demand, tight lending conditions and the pressures of the recession
will all suppress activity in the market.
