Mortgages

From 26 April 2014 new rules for residential mortgage providers will be switched on. Whilst this brings new compliance challenges for providers, there are also opportunities as the definition of High Net Worth mortgage customers in the final rules has been amended to cover more borrowers and the market for interest-only mortgages survives...

The Financial Conduct Authority has issued final notices banning two former directors of Which Mortgage Limited in respect of their failure to act with due care and skill to ensure that the firm had appropriate controls to verify mortgage applications which were submitted to high street lenders...

Topics in this issue:

What does a 0.5% Bank rate for four years mean for lenders?

Interest-only scrutiny should help borrowers keep on track

CML chairman calls for more mortgage market certainty

CML welcome Fathom Consulting as new associate

Commenting on warning by the FCA over a potential crisis in the UK's interest only mortgage market, Claire Carroll, partner and financial services expert at global law firm Eversheds, says: "The FSA was frequently criticised for being a reactive regulator, allowing problems to build up before taking rearguard action. One of the FCA's key messages before 1 April was that it would step in earlier and act faster to identify problems that risked harming consumers..."

On Monday 29 April 2013, Michael Joseph James Lewis of 3 Sedley Close, Rainham, Gillingham, appeared at Medway Magistrates Court in relation to criminal offences brought against him by the FCA...

The FCA has published its research into consumers’ ability to repay their interest-only mortgages when they mature. The findings show that many people should be in a good position to repay their mortgage when it is due for repayment...

Find out why borrowers with an interest-only mortgage need to check whether their current plan will repay all of their loan and steps they can take to make sure it does...

Personal deposits rose by 5.8% over the year to March 2013...

Topics in this issue:

CRD IV adopted by European Parliament

Exchange of multilateral tax information

MiFID II and MiFIR compromise texts

Supervision of money market funds

Implementation of OTC derivatives market reforms

IOSCO principles on financial market benchmarks

ESAs report on risks and vulnerabilities in the EU financial systems

FCA Mortgage Market Review Q&As

FCA censures and bans managing director of SIPP operator

The FCA has reached an agreement with Santander UK Ltd that will see it contact over 270,000 mortgage customers about unclear information it gave before increasing the cap on its mortgage standard variable rate in 2008...

MMR lender roadshow Q&As has been published...

Gross mortgage lending by building societies and other mutual lenders was £2.5 billion in February 2013, up by 29% compared to the same month last year...

Personal deposits rose by 6.1% over the year to February 2013...

Topics in this issue:

Financial Industry Developments
SEC Risk Alert and Investor Bulletin on Investment Adviser Custody Rule
FHFA Outlines 2013 Goals for Fannie and Freddie
Rating Agency Developments

Asset Management
SEC Proposes Rules to Improve Systems Compliance and Integrity

RMBS Litigation
Washington State Court Strikes Jury Demands in RMBS Case
Investor Files Suit Against Nationstar Over Mortgage Auctions

European Financial Industry Developments
EBA Issues Good Practices for Banks' ETF Risk Management
FSA Report Relating to the LIBOR Scandal
OFT Launches Review into Payday Lending

Events
Solar Power Finance & Investments Summit 2013

This issue looks at what a chancellor with little room for manoeuvre might do to promote housing in his forthcoming Budget. CML also look at what negative interest rates - recently mooted by a Bank of England official - could mean for lenders, and a breakdown of regional data showing that recent growth in first-time buyer activity extends across the UK...

Gross mortgage lending by building societies and other mutual lenders was £2.4 billion in January, up by 25% compared to the same month last year. Mutuals took a 21% market share of gross lending in January, up from 18% in January 2012...

Personal deposits rose by 6.2% over the year to January 2013...

The Joint Forum released a consultative report on Mortgage insurance: market structure, underwriting cycle and policy implications...

Topics in this issue:

Lenders call for clarity on new regulatory powers

New governor gets early opportunity to set out his views

House purchase lending reaches 11-month peak

Lenders back launch of NewBuy Cymru

A mortgage is a form of loan that transfers ownership of a home from a borrower to a lender...

The Administrative Court has recently decided an important case on a mortgagor’s entitlement to compensation under Financial Services Compensation Scheme which gives some indication of the Court’s approach to interest only mortgages...

Topics in this issue:

Ten snapshots of an improving mortgage market

Can we remove the barriers to longer-term tenancies?

Energy efficiency scheme gets the green light

Indicators "testify to an improving market" - CML market commentary

Congress in the Dodd-Frank Act responded to concerns about the quality of mortgage loans by establishing incentives for lenders to seek to ensure that borrowers had the ability to repay mortgage loans made to them...

Topics in this issue:

• Reflection on 2012: much done, more to do
• 2012 in Statistics
• Mortgage Credit Directive & Over-Indebtedness Dominate on the Retail Side
• Technicalities Do Matter: the Devil is in the Detail
• Enhancing the Quality and Transparency of Covered Bonds
• Covered Bond Label
• EMF Members 2013
• ECBC Members 2013
• Save the Dates