Policy issues
We monitor a number of policy issues relating to the mortgage and housing markets.
Below is an A-Z list of all the policy areas we cover. You can browse through the list or click on a letter to jump down to a section. You can also use the search on the left to look for a particular keyword or subject.
A
Adverse credit mortgages (also known as sub prime or non-conforming mortgages)
17 Jun 08 | What is an adverse credit mortgage? Where can you find more information? This page also includes the results of the FSA thematic inspection from July 2007.
Advice agencies
8 Aug 08 | This policy page includes work by advice agencies such as Citizens Advice and Shelter and also summarises liaison between such organisations and the CML.
Anti-money laundering
26 Mar 08 | Summarises recent activity in the area of anti-money laundering, including work of the Joint Money Laundering steering group. The most recent update in the members' only area highlights the release of the FSA's industry wide review of anti-money laundering processes.
APR calculations
23 Jun 08 | Explains what the Annual Percentage Rate of Charge (APR) is and how it is calculated.
Arrears and repossessions
2 Sep 08 | An update for members on the Financial Services Authority's thematic work on arrears and repossessions. Following the release of the CML's Q1 arrears and possessions data on 8 August this page also includes an update on commitments to government.
Asbestos
7 Jul 08 | Provides an overview of the current position on asbestos in the home.
Automated registration of title to land in Scotland (ARTL)
9 Sep 08 | The Registers of Scotland which is the Executive Agency with responsibility for the land register in Scotland plans to introduce an electronic process to register deeds in the land register.This will include security deeds.
Automated valuation models (AVMs) in the context of Basel 2 - FSA guidance
1 Sep 08 | This page provides the FSA's view on how automated valuation models (AVMs) can be used in the context of Basel 2.
B
Bankruptcy - personal
21 Jul 08 | The new rules on personal insolvency were brought in under the Enterprise Act 2002 and came into effect on 1 April 2004. The rules are intended to stimulate enterprise by removing some of the barriers to entrepreneurial risk taking, including reducing the stigma of bankruptcy.
Basel II - a guide to new capital adequacy standards for lenders
6 Feb 08 | A guide to the Basel II capital adequacy standards that are being introduced for lenders, replacing the current Basel Accord.
Basel II - questions and answers
6 Feb 08 | A policy update explaining in simple terms the international capital accord, Basel II.
Buy-to-let loans
24 Jun 08 | Describes the circumstances in which buy-to-let (BTL) loans might fall within the provisions of the mortgages: conduct of business rules.
C
CAT standards
24 Jun 08 | An explanation of "CAT" standards and what the standard is for mortgage products.
Citizens Advice Bureau report: Set up to fail - CAB clients' experience of mortgage and secured loan arrears problems
30 Jul 08 | The Citizens Advice Bureau (CAB)has published its report "Set up to fail - CAB clients' experience of mortgage and secured loan arrears problems". This page sets out our views on that report.
Claims Management Companies
3 Sep 08 | This update draws attention to a press release issued jointly by the Office of Fair Trading and the Ministry of Justice warning consumers to "think carefully" before using the services of claims management companies.
Climate change
21 Apr 08 | This policy issue deals with climate change.
CML Northern Ireland: An overview in 2006
16 Sep 08 | Overview of the CML policy position in Northern Ireland, and links to recent CML publications on the subject.
Codes and Statements of Practice
16 Jul 08 | This page provides information about a number of Codes and Statements of Practice which CML members have historically been asked to comply with.
Commonhold
30 Jul 08 | Provides a brief overview of commonhold and related issues.
Consumer credit - draft directive
27 May 08 | This paper provides an overview of the legislative process and key implications for mortgage lenders of the directive on consumer credit, which was published in the Official Journal on 22 May 2008.
Consumer Credit Act "wealth warnings"
24 Jun 08 | This page explains the prescribed text for "wealth" warnings which must appear in advertisements for mortgage products.
Consumer Credit Act 2006: Removal of the £25,000 financial limit and impact of Section 82 of the CCA 1974
29 Sep 08 | This summary provides an update on the Parliamentary progress of theLegislative Reform Order (LRO) to ensure that buy-to-let loans remain unregulated. A copy of the LRO is included on this page. Also included is the statutory instrument extending the transitional provisions for buy-to-let lending until 31 October when the LRO is expected to come into force.
Contaminated Land
17 Jun 08 | This sets out lenders' current position on contaminated land.
Conveyancing and Land Registry issues
2 Oct 08 | This deals with issues relating to general conveyancing issues particularly relating to the Land Registry. It includes recent correspondence from the Land Registry on changes to office copies. E-conveyancing is dealt with in a separate policy page.
Credit reference agency searches
17 Jul 08 | Provides guidance on the use of searches and leaving "footprints" on consumers' credit files.
D
Data reporting requirements
30 Jul 08 | Following consultation earlier this year, the Financial Services Authority (FSA) has revised some of its data reporting requirements, including complaints data.
Debt arrangement scheme
30 Jan 08 | This update looks at the debt arrangement scheme (DAS), a debt management tool which was introduced in Scotland in November 2004 for people with two or more debts who could pay what they owe given more time.
Distance marketing directive of consumer financial services
24 Jun 08 | Describes the impact of the EU Directive on Distance Marketing, which applies to secured and unsecured loans where the whole transaction has been completed without there having been any face-to-face contact between the customer and the product provider or intermediary.
E
Electric and magnetic fields (EMFs)
17 Sep 08 | This page provides an update on current work on electric and magnetic fields and their potential to impact on lending.
Electronic conveyancing
26 Sep 08 | The Land Registry's revised timetable for e-conveyancing. An update on the introduction of EDS1, e-charges, e-transfers and Land Registry fees. Members using EDS may want to check that the e-transfer proposals do not cause an issue for them under the EDS fee structure. The LR is planning to carry out market research into electronic funds transfer and the chain matrix.
Endowment mortgages
16 Jul 08 | This page explains the background to endowment complaints, including the ABI's Code of Practice, and summarises recent developments. This latest update summarises the most recently released data on endowment complaints.
Enterprise Act 2002 - Office of Fair Trading guidance
24 Jun 08 | Explains the implications of changes to competition and consumer law brought into effect by The Enterprise Act 2002, which came in to force on 20 June 2003, largely replacing the Fair Trading Act 1973.
Equity release
17 Sep 08 | This provides an overview of the current position on equity release, including an update on the FSA work on good practices in the lifetime mortgage market.
EU Commission green paper: Mortgage Credit in the EU
25 Jul 08 | An overview of the green paper on mortgage credit in the EU with an analysis of its possible implications for the UK mortgage market and recent developments in the subsequent policy debate.
EU white paper on mortgages
22 Sep 08 | This paper provides an overview of the EU white paper on mortgages, which was published on 18 December 2007. The Commission has now indicated that it will not publish proposals for a directive in 2008 or 2009. An update on Commission progress on studies and impact assessments has been attached.
European Code of Conduct
24 Jun 08 | Explains what the European Code of Conduct is and its impact for UK lenders.
F
Financial capability
14 Jul 08 | This page summarises the various initiatives announced by the Government and the Financial Services Authority, which are designed to enhance consumers' understanding of financial services.
Financial Ombudsman Service
30 Sep 08 | This page has been updated to report on the publication, on 25 September 2008, of a FOS consultation paper setting out proposals for publishing complaints data.
Financial promotions
19 Sep 08 | Updated to draw attention to new guidance published by the Financial Services Authority and Office of Fair Trading on how to meet the advertising requirements of the FSMA and CCA regimes.
Financial Services Authority - annual policy documents
13 Aug 08 | Every year the FSA publishes a number of wide-ranging policy documents, such as its annual report, Financial Risk Outlook and the Business Plan and consultation on fees and levies. This page summarises the key messages in these documents for mortgage lenders.
Flooding
17 Sep 08 | This page provides information on flooding and where to get further advice. In July 2008 insurers renewed their commitment to make flood insurance available where the flood risk is adequately managed.
Fraud: awareness and prevention
30 Jul 08 | Financial crime and mortgage fraud are areas of considerable concern to all lenders. In its many guises, financial crime is capable of causing lenders significant expense and loss of public credibility. It is also an area of increasing complexity where lenders have to be aware of developments which may adversely affect their mortgage business.
Fraud: FSA information from lenders scheme and supervisory action
1 Oct 08 | The FSA intermediary fraud initiative was launched on 12 April 2006. This summary provides an overview of the scheme and FSA contact details. The members' section includes further information on the scheme and the latest updates on supervisory action.
Freedom of Information Act 2000
24 Jun 08 | This page reports two decisions, both relating to the Financial Services Authority, made by the Information Commissioner under the Freedom of Information Act.
FSA's comparative information tables
23 Jun 08 | This page gives information about the FSA's comparative tables, which have recently been extended to include payment protection insurance products.
FSA's Key Facts logo
23 Jun 08 | Explains that the FSA's Key Facts logo is a registered trademark, and that where it appears on documents as prescribed by the FSA, it must be shown with the ® trademark symbol.
G
Green mortgages
17 Sep 08 | This page provides some background information on green mortgages.
H
Home improvement
1 Sep 08 | This update tells you about home improvement loans and the local authority regime for home improvement grants and loans.
Home information packs - recent developments
17 Sep 08 | Updated to include links to the recent government announcement of consultations on a new property information questionnaire and charges for local authority property searches.
Home inspectors and valuations
17 Sep 08 | This page provides information on the possibility of home inspectors with a new valuation qualification providing valuations for lenders.
Homelessness etc. (Scotland) Act 2003
29 Sep 08 | Under Section 11 of the Act, a lender holding a standard security over a residential property in Scotland will be required to give notice to the local authority where the property is situated when they issue a calling up notice, default notice or make an application to the court for a warrant of possession under a standard security.
HomeStake - a shared equity scheme operating in Scotland
30 Jan 08 | A shared equity scheme known as HomeStake has been introduced in Scotland to assist those on low incomes who wish to buy a house but cannot afford to pay the full price.
Homeswaps
1 Sep 08 | This policy issue tells you about the Homeswap schemes being used by a number of local authorities in regeneration areas.
House-buying and selling in Scotland - Reform
7 May 08 | The Scottish Government has announced plans to reform the house-buying and selling process in Scotland by introducing the home report with effect from 1 December 2008. This will impact on members lending in Scotland and a number of issues to be considered are included for members.
Houses in Multiple Occupation in Scotland (HMOs)
30 Jan 08 | This explains the licensing requirements in Scotland where a rented property is occupied by 3 or more persons.
Housing and Regeneration Act 2008
1 Aug 08 | The Housing and Regeneration Act 2008 was introduced as a Bill in November 2007 and passed through Public Committee (January 2008) and Report (31 March 2008) stages. It passed through the Lords for second reading stage on 28 April 2008 and Report on 30 June 2008 finally reaching Royal Assent on 22 July 2008. The main purpose of the Act is to establish a new housing and regeneration body to be known as the Homes and Communities Agency (HCA) to improve the supply and quality of housing in England and to abolish the existing regulator of housing associations (HA), setting up a new one, the Tenant Services Authority (TSA).
Housing benefit reform: recent developments
26 Aug 08 | This paper provides an overview of the government reforms to the calculation and payment of housing benefit in the private rented sector. It also addresses the issues that the reforms pose in the social rented sector for lenders involved in funding housing associations.
Housing Corporation (delegation) etc Act 2006
24 Jul 08 | This paper provides a brief overview of the Act, which received Royal Assent in July 2006 and came into effect immediately. The Act addresses problems caused by the Housing Corporation incorrectly granting consents to registered social landlords.
Housing green paper
7 Jul 08 | This page provides a summary of the key issues in the recent housing green paper for lenders.
Housing market renewal areas
17 Jun 08 | This policy issue deals with housing market renewal area projects.
I
Islamic home finance
8 Dec 06 | Background on Islamic home finance and an overview of the issues.
L
Leaseholders service charges
24 Jul 08 | Some leaseholders who bought their homes under the right-to-buy are facing major works service charges. This could have implications for lenders with respect to existing and future borrowing to finance these properties, and for initiatives to help fund these charges.
Legal Services Bill
13 Aug 07 | The Legal Services Bill is at committee stage in the House of Lords at present. Its core proposals include creating a single legal services regulator and allowing alternative business structures for legal firms.
Lending to foreign nationals
23 Jun 08 | Provides guidance for lenders on what to consider when lending to foreign nationals.
Lifetime mortgages - FSA capital requirement under the standardised approach
1 Feb 08 | This paper outlines the FSA's guidance on how to calculate the capital requirement for lifetime mortgages under the standardised approach of Basel 2, confirming the treatment agreed with industry over the summer.
Low-cost home-ownership
17 Sep 08 | Updated to include information on the publication of the Pomeroy review of prospects for private sector shared equity.
M
Modern methods of construction (MMC)
1 Feb 08 | This is an overview of the issues posed by modern methods of construction (MMC) for lenders. It covers existing non-traditional housing as well as recently constructed dwellings.
Modern methods of construction (MMC): the new LPS 2020 certification standard
3 Oct 07 | We have been working with the Building Research Establishment (BRE) to develop a certification standard to meet lender concerns about the design, maunufacture and onsite erection of MMC.
Money Advice Liaison Group
12 Aug 08 | The Money Advice Liaison Group has published guidelines for lenders dealing with customers experiencing mental health issues.
Mortgage Code
24 Jun 08 | A background note on the history of the Mortgage Code.
Mortgage exit administration fees
28 Aug 08 | This page has been updated to draw attention to the results of the follow-up work which the FSA has undertaken to review firms' response to the statement of good practice on mortgage exit administration fees, which was published in January 2007, and its subsequent communications in August and November 2007.
Mortgage Funding Developments
26 Sep 08 | This page provides a guide to recent developments in mortgage funding markets and outlines the policy measures that are being implemented or considered to combat the current market dislocation.
Mortgage interest direct (MID)
5 Aug 08 | Information for members handling and maintaining Mortgage Interest Direct (MID) files, including contact details for Department of Work and Pensions and details of the Mortgage Interest Direct (MID) administrative charge for lenders.
Mortgage regulation – background
24 Jun 08 | Sets out the background to the development of the mortgage regulation regime.
Mortgage regulation – cost transparency of valuation
24 Jun 08 | Explains that lenders are required to disclose administration fees levied in connection with mortgage valuations.
Mortgage regulation - Financial Services Authority (FSA) effectiveness review of MCOB
11 Aug 08 | This page has been updated to include information on the publication of consumer research on arrears practices as part of stage 2 of the FSA's review of the effectiveness of the Mortgages: Conduct of Business (MCOB) rules.
Mortgage regulation - recent developments
3 Oct 08 | Updated to draw attention to the publication by HM Treasury of a report on age discrimination in financial services.
N
New build
22 Sep 08 | This page gives information about the conveyancing and valuation of new-build properties. Including the CML's disclosure of incentives form, the associated frequently asked questions document and an updated version of the RICS Red Book guidance to valuers on the issue.
Non-advised sales – scripted questions
24 Jun 08 | The FSA's Mortgage Conduct of Business rules require mortgage lenders and mortgage intermediaries to structure non-advised mortgage sales by using scripted questions. This page sets out some of the issues which we believe you will want to take into consideration when devising the scripted questions for use by your firm.
P
Payment protection insurance (PPI)
30 Sep 08 | Updated to draw attention to an update, published by the FSA on 30 September 2008, on the third phase of its thematic work on processes and systems around the sale of PPI policies.
Possession claims online (PCOL)
30 Jul 08 | The possession claims online (PCOL) project aims to deliver a web-enabled application to manage claims in county courts for possession of residential property.
Possessions register
6 Aug 08 | Provides background and guidance on the CML possessions register.
Pre-action protocol
24 Sep 08 | This page summarises the position on the Civil Justice Council's proposals for a mortgage pre-action protocol.
Private landlords in Scotland - regulation
9 Sep 08 | This policy issue deals with a registration scheme for private landlords which was introduced in Scotland on 30 April 2006. It has implications for landlords, tenants and lenders.
Private landlords in Scotland - repairing standards
9 Sep 08 | From 3 September 2007 there are important changes in the laws covering the responsibilities of private landlords in Scotland to carry out repairs.
Property information systems common exchange standard - PISCES
7 Jul 08 | PISCES enables the electronic transfer of information directly from one system to another. Lenders are encouraged to adopt PISCES standards and assist in developing new ones.
R
Retail Distribution Review
8 Aug 08 | This page gives background information about the FSA's Review of Retail Distibution, including information on the publication of their interim report. The most recent update advises that the policy statement expected in the autumn will now be published in November, not October, as announced in April 2008.
Review of council housing finance and rents policy
28 Aug 08 | Caroline Flint formally launched a review of council housing finance on 10 March 2008. Although the review focuses on council housing finance, it has a workstream on rents covering rent policy across both councils and housing associations. The CML is being consulted as a stakeholder at various stages of the review due to complete by Spring 2009.
Right-to-buy (RTB)
24 Jul 08 | This paper provides background information on right-to-buy (RTB)and offers an overview of recent changes.
Rome 1 regulation on applicable law: implications for mortgage lenders
8 Jul 08 | This paper provides an update on aspects of the regulation of relevance to mortgage lenders. The regulation was agreed by the European Parliament in December 2007 and was signed off finally in Council on 17 April 2008. It has now been put nito the Offical Journal, signalling formal adoption.
S
Sale and rent back/ sale and lease back companies
1 Sep 08 | Updated for members to include a request for views by 29 August on the NLA RentBack draft Code of Practice.
Shortfalls on interest-only mortgages
24 Jun 08 | On 19 May 2006, the FSA published its consumer fact sheet "Will your investment or savings plan pay off your mortgage?". The fact sheet provides information to consumers facing a shortfall at the end of the mortgage term.
Social housing funding and regulation in England
1 Oct 08 | This policy provides an up to date overview of affordable housing funding and regulation in England. It highlights current issues for lending to the housing association sector there.
Social housing funding and regulation in Wales
11 Aug 08 | This page provides an up to date account of social housing sector issues in Wales. It highlights issues relevant to lending for the housing association sector there.
Stamp duty
30 Jul 08 | An update on stamp duty and recent research on this subject.
Steering Committee on Reciprocity (SCOR)
30 Jul 08 | Provides an overview of SCOR and the Principles of Reciprocity.
Sustainable home-ownership initiative: an overview
6 Aug 08 | This overview provides a summary of the the sustainable home-ownership(SUSHO)initiative.
T
Tenancy deposit protection
24 Jul 08 | This provides an overview of the schemes for tenancy deposit protection introduced on 6 April 2007.
Tenant default - termination of tenancies
30 Jul 08 | The Law Commission has published its proposals and draft bill for reforming the law on the termination of tenancies for tenant default.
Training and competence
24 Jun 08 | A summary of the Financial Services Authority's requirements for staff to be trained and competent to carry out their jobs.
Treating customers fairly
2 Jul 08 | This issue has been updated to draw attention to a progress update published by the FSA on 30 June 2008: the update reports on firms' response to the 31 March deadline by which they were required to show that they had adequate management information in place to demonstrate that they treat their customers fairly.
Treating customers fairly: responsibilities of providers and distributors
24 Jun 08 | This page summarises the key points raised in an FSA discussion paper (DP06/4) published on 28 September 2006, and the subsequent Policy Statement (PS07/11) which was published in July 2007.
U
Unfair Commercial Practices - EU directive
24 Jul 08 | The Unfair Commercial Practices Directive was adopted by the European Union on 11 May 2005. It was due to be transposed into UK law by 12 June 2007 and implemented 12 months later. This most recent update draws attention to the Consumer Protection Regulations 2008 (SI 2008 No 1277), which came into effect on 26 May 2008.
Unfair terms in consumer contracts regulations
28 Aug 08 | Updated to refer to the publication in August 2008 of an FSA note on a review of the fairness of terms in mortgage contracts that allow firms to vary their charges.
V
Valuation and survey procedures - simultaneous processes
23 Jun 08 | Explains that lenders may in some circumstances be prepared to accept a mortgage valuation carried out by a surveyor instructed by a borrower to carry out a buildings survey or homebuyer's survey and valuation.
