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Euro mortgage agency plans

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A number of European banks have banded together to support the formation of a European mortgage finance agency that would create a pan-European capital market in mortgage-backed securities. The agency would support the growth of long-term fixed rate mortgages without early redemption fees.

The proposals are backed by Crédit Agricole, BBVA, Irish Permanent, BCP and Northern Rock. The new entity would be privately owned and carry an implicit guarantee from the EU.

It is hoped that the sch