The final Mortgage Market Review rules come into effect on 26 April 2014. This review started in 2009 and the timeline below outlines the process undertaken by the FSA and FCA so far and a seven-point plan which aims to work with firms for a successful implementation.
- October 2009 Mortgage Market Review (MMR) Discussion Paper (DP) 09/3, which set out broad concerns about the UK mortgage market and invited debate on a suggested package of reforms to address them.
- January 2010 The first MMR Consultation Paper (CP) 10/2 signalled our intention to bring all those who advise on or sell mortgage contracts into the Approved Persons regime, to reduce mortgage fraud
- July 2010 The CP on responsible lending (CP10/16) which focused on the regulatory obligations of lenders and suggested the changes we thought necessary to deliver a more responsible approach to lending – and borrowing – in future.
- November 2010 The CP on distribution and disclosure (CP10/28), focused on enhancing the mortgage sales process, the role of intermediaries and improving disclosure of information for consumers
- December 2011 CP11/31 entitled 'Mortgage Market Review: Proposed package of reforms', pulls everything together and consulting further on the entire package of MMR proposals..
- 30 March 2012 closing date on feedback and comments on CP11/31
- October 2012 feedback statement on CP11/31 and final rules in Policy Paper PS12/16
- 2013 The FSA will be replaced by the Financial Conduct Authority and Prudential Regulation Authority in 2013.
- 2013/14 MMR Implementation work To help intermediaries to prepare for the final (MMR) rules which come into effect on 26 April 2014 the FCA has developed a seven-point plan which aims to work with firms for a successful implementation. This is an overview of their timeline to give you an idea of what to expect.
- 1 – Quarter one 2013 – firm engagement The FCA are running a series of regional roadshows for intermediaries and lenders to hear directly from the FSA about the final MMR rules and their plans for implementation.
- 2 – Quarter 2 2013 – phase 1 readiness tracking The FCA is keen to track how the industry is progressing toward implementation, therefore all regulated mortgage firms will need to complete an online readiness survey to identify if and where more support may be required. The FSA also intend to visit a sample of the larger and more specialist lenders and intermediaries to review firms’ business models and assess whether all the necessary areas have been considered and will be ready for implementation. It is important to be honest with your answers as the FSA will use these to tailor the support and communication they deliver. Remember that they do not expect firms to be ready at this first phase however, they do expect firms to have a plan in place to record and track your implementation planning from now to implementation date.
- 3 – Quarter 3 2013 – phase 1 readiness tracking findings published The FCA will publish the findings from phase 1 of the readiness tracking, including statistics on the number of firms that are on track to implement the MMR and areas that firms are still struggling with.
- 4 – Quarter 4 2013 – further firm engagement and tailored workshops If the results of the survey indicate that firms still need help to understand some areas of the reforms, the FCA will hold tailored workshops during this period, concentrating on any areas of concern.
- 5 – Quarter 4 2013 – phase 2 readiness tracking The FCA will resend the online survey to all regulated mortgage firms to find out what progress firms are making.
- 6 – Quarter 1 2014 – phase 2 readiness tracking findings published As with phase 1, these findings will also be published and used to shape the FSA’s final communications before implementation to ensure that firms are ready.
- 7- 26th April - MMR implementation
- Approved Persons regime for mortgage advisers is currently on hold until the FCA has been established.