19 Dec

Implement Crosby recommendations now, says AMI

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.

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