The Financial Conduct Authority is consulting on changing rules on the data firms have to provide on mortgage issuance following the introduction of the Mortgage Market Review, which will require lenders to submit more extensive information on their activities.
The regulator said it wants to collect additional data about mortgages and supervise conduct in the mortgage market, given the changes coming into effect on 26 April 2014.
Traditional lenders submit a return each quarter covering product sales data, while non-deposit taking lenders supply a separate ‘mortgage lending and administration return’ (MLAR) quarterly.
The pridyct sales data return will be amended to collect additional data on areas such as affordability, as well as on performance of all regulated mortgage contracts such as “the basic characteristics of the mortgage and whether borrowers have experienced payment difficulties”.
The MLAR will be updated to collect “additional data items from non-deposit taking mortgage lenders, to monitor the prudential position of these firms and their compliance with our new MMR rules”.
The MMR introduces a package of reforms to the mortgage market, including new rules on responsible lending and new prudential requirements for non-deposit taking mortgage lenders.
The FCA is asking for feedback from mortgage lenders or other home finance providers, those who advise on mortgages, administrators who submit regulatory returns and mortgage trade bodies by 1 August 2013.
