The exceptions should be based on the amount of the loan in excess of the limit

Brendan Burgess

Founder
Messages
51,915
I will be making the following point in my submission:


The exceptions should be based on the amount of the loan in excess of the limit and not the entire loan

At present, a lender is allowed to give 15% of new loans in excess of the LTV limits
upload_2016-8-25_11-3-28.png

Rather than having 15% of loans in excess of the limits, the amount of each loan in excess of the limits should be limited to, say, 2% of the loan book.

This would encourage lenders to make more loans at 92% and fewer loans at 100%.
 
Back
Top