NaCSBA has responded to the Prudential Regulation Authority (PRA) on new regulations that would adversely affect custom and self build mortgage lenders.
Like the Building Societies Association, NaCSBA acknowledges that the PRA’s commitment to the Basel 3.1 Standards are a positive measure. However, its proposed increase in capital requirements have the potential to inadvertently prejudices our sector with. These measures secure secondary competitiveness through more robust regulations.
While this may seem on the periphery of the wider sector, it is in fact vital to ensure the smooth running of custom and self build. NaCSBA’s response stresses why this is so, and why the data in this instance does not support self build lenders inclusion in the response.
The response sets out that custom and self build lending performance is an exception in that it performs well. It believes harmful elements in the amended consultation are the result of oversight as opposed to any deliberate changes.