FSE 2013: Bridging industry is still a concern
Linda Woodall, director of mortgages & consumer lending at the FCA, said that some practices carried out by the industry would need to be addressed.
She said: “A continued concern is that bridging products are being sold to those in financial difficulties.
“MMR is tailored to support bridging customers and its implementation will help.”
Woodall highlighted the use of bridging products for credit repair as one of the uses that will be seen as in breach of the rules once MMR is implemented unless a suitable exit is arranged.
The regulated bridging industry is set to come under remit of the FCA once it is transferred from the OFT on April 14.
However Woodall voiced concerns that the unregulated side of the industry will continue to operate outside the FCA’s control.