The Council of Mortgage Lenders (CML) is set to be replaced by a new trade body called UK Finance. The CML, which has been in existence since 1988, has represented the interests of the mortgage lending industry for almost three decades. However, it has been decided that a new, more streamlined trade body is needed to represent the industry going forward.
The Reason for the Change
The decision to replace the CML has been prompted by a number of factors. One of the main reasons is the changing nature of the mortgage lending industry. With the rise of new technologies and the increasing popularity of online lending platforms, it has become clear that the old model of representing the industry is no longer fit for purpose.
In addition, there has been a growing demand from lenders and other stakeholders for a more unified voice to represent their interests. The new UK Finance trade body will seek to achieve this by bringing together a range of different industry bodies, including the British Bankers’ Association, the Asset Based Finance Association, and the Council of Asset and Invoice Finance.
What Will Change?
The new UK Finance trade body will have a number of key objectives. These include:
- Representing the interests of the entire mortgage lending industry, including lenders, brokers, and other stakeholders
- Providing a more unified voice for the industry, helping to shape policy and regulation at a national and international level
- Encouraging innovation and the adoption of new technologies in the mortgage lending industry
- Promoting best practice and professional standards across the industry
To achieve these objectives, the new trade body will be led by a team of experienced professionals drawn from across the industry. It will also have a range of working groups and committees, covering areas such as regulation, technology, and customer service.
What Does it Mean for Consumers?
For consumers, the replacement of the CML with UK Finance is unlikely to have a direct impact on their day-to-day lives. However, it is hoped that the new trade body will help to promote best practice and improve standards across the mortgage lending industry. This could ultimately lead to a better experience for consumers, with improved levels of customer service and more innovative products and services.
In addition, the new trade body will have a key role to play in shaping policy and regulation at a national and international level. This could help to ensure that the mortgage lending industry remains competitive and innovative, while also protecting the rights of consumers and promoting responsible lending practices.
Conclusion
The replacement of the Council of Mortgage Lenders with UK Finance is a significant development for the mortgage lending industry. With a more unified voice and a greater focus on innovation and best practice, the new trade body is well placed to represent the interests of lenders, brokers, and other stakeholders in the years ahead. While the impact on consumers may be indirect, the hope is that the new trade body will help to promote a more competitive, innovative, and customer-focused mortgage lending industry.