On 26 April 2014, the FCA’s final Mortgage Market Review (MMR) rules come into force.
The FCA has published the findings from its second MMR survey and has found that firms believe that they will be able to implement the new rules on time. However, a small number of firms (less than 1%) have indicated that they will not be ready by the deadline, but that they will not be undertaking any mortgage business until they are. All are small firms.
The FCA found that 90% of those firms without an MMR implementation plan were confident that they would implement on time. The vast majority of these were small mortgage intermediary firms. The FCA repeats its message to firms throughout the lead up to the MMR which has been to plan for implementation and for such plans to be formalised.
The FCA also found that mortgage intermediaries wanted more information on disclosure, training and competence and advice. In relation to disclosure, mortgage intermediaries wanted more information on:
- verbal disclosure and using documentation;
- verbal disclosure wordings;
- evidencing verbal disclosure; and
- how fees should be disclosed.
View MMR readiness tracking survey findings, 20 February 2014