FSA has published a new consultation as part of the mortgage review. This paper proposes:
- strengthening existing rules on handling of arrears, including stopping firms from adding early repayment charges on arrears charges, making them consider all options for borrowers and requiring them to record all calls about arrears handling; and
- creating a new controlled function for home finance advisers and those who arrange non-advised sales and requiring a CF10 function holder to be responsible for compliance oversight of home finance activities.
It wants comments by 25 April. (Source: FSA/PN/013/2010 and Consultation Paper 10/2***: Mortgage Market Review: Arrears and Approved Persons)