On 13 December 2018, the FCA and PRA jointly published a consultation paper setting out proposed changes to mortgage reporting requirements (FCA CP18/41, PRA CP30/18).
The joint consultation will be directly relevant to: mortgage lenders, home finance administrators and entities that own mortgage books but which are not authorised to lend. The consultation is also relevant to stakeholders with an interest in the mortgage and home finance market including trade bodies representing home finance firms.
The FCA and PRA are proposing to amend home finance reporting requirements to address gaps and problems they have identified so that:
- mortgage administrators submit product sales data (PSD) performance reports on mortgages owned by entities which are not authorised home finance lenders;
- mortgage lenders: (i) submit PSD sales reports on internal product transfers and further advances; (ii) submit PSD sales reports containing information on any other outstanding debt secured on the property with the same lender at the point a loan is first made; (iii) submit PSD sales reports on second charge mortgages containing information on any other outstanding debt secured on the property with other lenders at the point a new loan is made; and (iv) submit PSD sales reports containing information on the contractual reversion rate offered;
- second charge administrators submit an additional form in the mortgage lending and administration return (MLAR) on the number and value of loans they administer; and
- home finance administrators have more clarity regarding their requirements to submit data in the MLAR on mortgages sold on.
The deadline for comments on the joint consultation paper is 22 March 2019. The FCA and PRA plan to provide feedback and publish final rules in a joint policy statement in mid 2019. The regulators plan to offer firms an implementation period of a year following that publication.