FSA has issued three factsheets relating to the mortgage market review summarising consultation papers and policy statements issued by the FSA concerning amendments to the Mortgage Conduct of Business Sourcebook (MCOBS). The factsheets cover the following topics:

  • Responsible lending. This describes the new rules proposed by CP10/16, including rules on affordability assessments and arrears charges. It also provides updates on FSA's approach to regulating interest-only mortgages and non-deposit taking lenders (non-banks). The consultation period for CP10/16 is now closed and FSA will present its decisions in final rules in a later policy statement.
  • Distribution and disclosure. This summarises the main issues addressed in CP10/28, including the specific proposals relating to distribution, disclosure, niche markets and data requirements. The consultation period for CP10/28 is now closed and FSA will present its decisions in final rules in a later policy statement.
  • Fact-finding and suitability. This summarises CP10/2 and the subsequent policy statement (PS) 10/9. The main issues addressed by both the CP and the PS are the proposed amendments relating to arrears and approved persons. The changes to MCOBS concerning arrears came into force on 25 June 2010. FSA remains committed to making changes to the approved persons regime but has deferred the introduction of the changes until 2012/13.

(Source: Responsible Lending – CP10/16, Improving the way you give advice: Fact-finding and suitability and Distribution and Disclosure – CP10/28)