FCA and PRA Consult on Reporting Requirements for Mortgage Lenders
FCA and PRA proposed (in CP18/41) new reporting requirements that would apply to mortgage lenders and home finance administrators. FCA and PRA have identified a number of areas in which further data are needed from firms. CP18/41 seeks to address these gaps by setting out proposals to increase the data which mortgage lenders and administrators are required to submit via Product Sales Data (PSD) and Mortgage Lending and Administration Return (MLAR). Comments on this consultation are due by March 22, 2019.
CP18/41 contains proposals made solely by FCA in relation to its objectives, in addition to the joint proposals that are given effect through a combination of PRA and FCA rules. The Authorities recognize that changes to reporting systems can be costly for firms and are making every effort to limit the frequency of changes to MLAR and PSD. Therefore, FCA and PRA are consulting on these proposals as a package. This consultation will be directly relevant to mortgage lenders, home finance administrators, and entities that own mortgage books but are not authorized to lend. This consultation will also be relevant to stakeholders with an interest in the mortgage and home finance market, including trade bodies representing home finance firms and charities and other organizations. FCA and PRA will consider comments received and publish its feedback, along with the rules, in mid-2019.
These data support the FCA in meeting its operational objectives by allowing it to identify and address potential harm to consumers as part of ongoing firm supervision. They also support wider thematic work and competition studies; for example, the recently published Mortgage Market Study. FCA also shares these data with BoE and PRA. BoE and PRA use these data to monitor macro-prudential risk in the housing market, including informing the considerations of the Financial Policy Committee. PRA also uses these data to support firm supervision.
Related Links
Comment Due Date: March 22, 2019
Keywords: Europe, UK, Banking, Reporting, Mortgage Lending, MLAR, CP18/41, PRA, FCA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
David Fihrer
Skilled life insurance actuary; subject matter expert on IFRS 17 and source of earnings
Related Articles
EBA Issues Erratum for Phase 2 Package of Reporting Framework 3.0
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
EBA Updates Lists of Entities for Use in Capital Calculations under SA
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
MAS Amends Notice on Related Party Transactions of Banks
MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.
ECB Amends Guideline on Euro Short-Term Rate
ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.
EBA Consults on Standards Related to FRTB-SA
EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).
PRA Proposes Rules Related to IRB Approach for Credit Risk
PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.
BoE Outlines Regulatory Treatment of Recovery Loan Scheme of UK
The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.
FSB Addresses G20 on COVID Measures, TBTF Reforms, and Climate Risks
FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.
OSFI Unwinds Temporary Increase to Covered Bond Limit for Banks
OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.
EU Amends CRR and Securitization Regulation in Response to Pandemic
To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).
