The U.K. Financial Services Authority said Tuesday that it plans to ban what the British call self-certification mortgages.

The FSA said it may issue final rules next year. Self-certification loans do not require consumers to validate their incomes (in the United States they were called "stated-income" loans during the housing boom). By 2007, customers' incomes were not checked in 45% of new mortgages in the U.K., the regulator said in October.

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