On 10 August 2021, the FCA published the following portfolio letters:

  • Mortgage third party administrators (dated 7 June 2021). In this portfolio letter the FCA: (i) sets out its view of the key risks Mortgage Third Party Administrator (TPA) firms pose to their customers or the markets in which they operate; and (ii) outlines its expectations of Mortgage Third Party Administrator firms, including how firms should be mitigating these key risks.
  • Outsourcing to third party mortgage administrators (dated 10 June 2021). In this portfolio letter the FCA states that: (i) firms cannot outsource regulatory responsibility for activities carried out on their behalf by TPAs, and therefore the FCA expects them to ensure that TPAs are correctly acting on their behalf and in line with the policies and procedures that have been agreed; (ii) firms must satisfy themselves that they have appropriate systems and controls, policies and procedures in place, together with their own internal governance and oversight so they can demonstrate they are treating customers fairly; (iii) the senior manager responsible for the oversight of the TPA’s activities should have this included in their Statement of Responsibility. The FCA will hold them to account where it finds breaches of its rules; (iv) firms should take steps to satisfy themselves that TPAs who administer mortgages on their behalf have adequate resources in place. Finally, the FCA adds that it expects consumers in default or arrears to be treated with forbearance and due consideration. Firms need to satisfy themselves that the TPA is, where appropriate, agreeing sustainable repayment and forbearance arrangements.