The biggest U.K. mortgage insurer is in danger, and it’s not the only one.
The Financial Services Authority, the government-appointed body that regulates the mortgage industry, has told RBS to “take immediate action” to save itself from potential default.
The FSA has imposed a $5.6 billion penalty on RBS, and said it will require the bank to submit to an “independent” investigation.
But the FSA also said that RBS could “continue to provide services as usual” as long as it kept the mortgage market stable.
RBS has not said whether it will take the FSAA’s warning seriously.
The government has not ruled out more penalties if RBS fails to implement a $2 billion loan guarantee that the FSD said could help stabilize the market.
RBC, a smaller mortgage lender, is one of the banks to have been cited by the FSEA.
RBA Governor Mark Carney said in June that the bank’s lack of transparency “can’t be allowed to continue.”
RBS said on Tuesday that the “fuelled speculation” around RBS’s assets has made it difficult for the company to comply with a “number of regulatory requirements.”
It said that the company’s risk-based business model “does not fit the nature of the business we have to be a responsible and sustainable provider of mortgage products.”
RBC said it has been providing mortgage products to consumers since 2008 and that the firm’s loans are more than 90% of the total size of all loans in the U.k.
RBB, which provides mortgages to households, is also under the FSU.
RUB, a financial services company, was the subject of a $20 million penalty from the FSLA last year.
The RUB penalty relates to the company being unable to comply fully with FSLAs rules for the purchase of securities, including the sale of certain shares of RBS.
Rubby is a company that is currently the subject to a $25 million penalty, which it said was “in relation to non-compliance with the FSPC and the FSCA rules governing the provision of services by RUB.”
RUB said it would seek “further information from the authorities as to why these issues were not fully resolved.”
The FSU also imposed a further $25.7 million fine on RUB last month over its failure to provide information on its loans to consumers.
RLB, another mortgage lender that has been cited as having failed to comply, is due to face a further penalty of $30 million.
RLC was one of a group of mortgage lenders to receive a fine of $20.7 billion last month from the government over its failures to comply.
The regulator has said that some mortgage brokers are not adequately checking customers’ financial condition before they sell them loans.
RSL, a mortgage lender and broker, has been the subject for a total of $27.4 billion in fines in the FSO since 2012.
RDS, a lender that provides mortgage loans, was fined $15.5 billion last year for failing to ensure that the mortgages were backed by the right collateral, and the company has not provided information to consumers about the quality of its loans.