Mortgage Market Review
1. FCA workshop on MMR Nov 2013
2. MMR guidance May 2013
3. MMR slides from FCA on subject
FCA MMR Workshops
As previously advised, Financial Direct attended one of the above Workshops on your behalf.
The main purpose of the Workshop was to ensure firms:
• Understand where the changes are within the distribution and disclosure process as a result of the MMR or reaffirm that the actions you have already taken (if appropriate) are compliant
• Understand whether the controls you have in place are adequate.
We attach copies of the various slides that were discussed which are self explanatory, but would also like to emphasise the following:
1. Although lenders have the responsibility to take into account the borrowers income (with proof) Brokers must continue to collect this and challenge any inconsistencies.
2. Where Interest Only mortgages are being arranged, Brokers must ensure that a reasonable repayment strategy is in place and warn the borrowers that the lender will require proof of this.
3. There is no a requirement to process Execution Only mortgages, if you chose not to.
4. Disclosure statements can now only be made verbally. There is however a requirement to record that Disclosure took place. This can be by means of a tick box on a compliance sheet. However, you can if you wish, and we would strongly recommend, that you continue to issue IDDs. If you do, you must remove the Key Features logo and the paragraph saying that this issue of the document is mandatory. If you use a Combined IDD, also referrring to Investment/Pension business, this must remain as ....