Policy issues

Advice agencies

22 Dec 09 | This policy page includes work by advice agencies such as Citizens Advice and Shelter and also summarises liaison between such organisations and the CML. It includes a link to the Shelter/CAB/Advice UK report "Turning the tide" published on 15 December 2009.

Anti-money laundering

9 Jul 09 | 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

9 Jul 09 | Explains what the Annual Percentage Rate of Charge (APR) is and how it is calculated.

Arrears and Possessions in Scotland

22 Jan 10 | The Scottish Government has published the report of an independent group set up to consider issues relating to possessions in Scotland. It has indicated that it will proceed to take forward the group's recommendations. If implemented these recommendations will have implications for members.

Arrears and repossessions

26 Feb 10 | The FSA has confirmed that it will amend its 'problems paying your mortgage' leaflet in April, which lenders are obliged to send to borrowers in arrears. Other recent updates include a summary of the FSA's proposals on arrears and repossessions set out in its mortgage market review consultation paper published in January.

Asbestos

17 Aug 09 | Provides an overview of the current position on asbestos in the home.

Automated registration of title to land in Scotland (ARTL)

23 Dec 09 | 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

17 Aug 09 | This page provides the FSA's view on how automated valuation models (AVMs) can be used in the context of Basel 2.

Banking Bill 2008

9 Oct 08 | The Banking Bill was introduced in Parliament on 7 October 2007. It makes a number of changes to the Financial Services Compensation Scheme, the procedures and powers for dealing with banks in financial difficulties, the powers of the Bank of England (BoE) in relation to the interbank payment system, the rights of commercial banks to issue bank notes and the governance of the Bank of England in relation to the maintenance of financial stability.

Bankruptcy - personal

1 Dec 09 | 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

7 Nov 08 | A policy update explaining in simple terms the international capital accord, Basel II.

CAT standards

9 Jul 09 | 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

2 Feb 10 | 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

9 Jul 09 | This page provides information about claims management companies (CMCs) and how they are regulated by the Ministry of Justice. The members' section has been updated to include information about a guidance note produced by the Claims Management Regulator on the use of misleading statements or omissions by CMCs.

Climate change

9 Jul 09 | This policy issue deals with climate change.

CML Cymru: developments in retail policy and lending

10 Jun 09 | This page provides an update on developments in retail policy and lending issues in Wales and the work of the CML Cmyru.

CML voluntary statement on s101 of the Law of Property Act 1925 following the Horsham Properties v Clark and Beech case

2 Feb 10 | The case of Horsham Properties v Clark and Beech has raised concerns that lenders will appoint receivers to avoid taking court action when seeking to possess a residential owner occupied property. The CML's Executive Committee has approved a statement on this case to allay these concerns.

Codes and Statements of Practice

9 Jul 09 | This page provides information about a number of Codes and Statements of Practice which CML members have historically been asked to comply with.

Commonhold

2 Feb 10 | Provides a brief overview of commonhold and related issues.

Consumer credit - draft directive

5 Nov 09 | 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"

9 Jul 09 | 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

1 Dec 09 | The Legislative Reform Order (LRO) to ensure that buy-to-let loans remain unregulated came into force on 31 October 2008. A copy of the LRO is included on this page. Members may wish to consider a possible legal issue that has recently been raised in relation to the LRO.

Consumer Credit Act regulated lending in Scotland

28 Jan 10 | The Scottish Parliament has introduced an Act of Sederunt which has implications for lenders where they are seeking in Scotland to recover sums advanced in realtion to lending which is regulated by the Consumer Credit Act 1974.

Consumer Credit Act; OFT consultation on guidance for second charge lending

1 Dec 09 | The OFT has published a consultation on guidance for brokers and lenders on second charge lending. The closing date for responses is 8 May 2009.

Consumer White Paper "A Better Deal for Consumers"

2 Feb 10 | This policy issue provides a summary of issues for secured lenders in the consumer White paper published 2 July 2009.

Contaminated Land

17 Aug 09 | This sets out lenders' current position on contaminated land.

Conveyancing and Land Registry issues

3 Feb 10 | This deals with general conveyancing issues. It has been updated to note note possible future changes in court rules for possession proceedings.

Credit reference agency searches

9 Jul 09 | This web page provides guidance on the use of searches and leaving "footprints" on consumers' credit files.

Debt arrangement scheme

23 Dec 09 | 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.

Developments in private rented sector policy

14 Aug 09 | This document provides an update on issues relating to the Rugg review, the government response to the review and other recent government announcements on the private rented sector.

Distance marketing directive of consumer financial services

9 Jul 09 | This page 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.

Electric and magnetic fields (EMFs)

24 Sep 09 | This page provides an update on current work on electric and magnetic fields and their potential to impact on lending.

Electronic conveyancing

2 Feb 10 | The Land Registry's revised timetable for e-conveyancing. An update on the introduction of EDS1, e-charges, e-transfers and Land Registry fees.

Endowment mortgages

9 Jul 09 | This page explains the background to endowment complaints, including the ABI's Code of Practice, and summarises recent developments. The most recent update summarised the data for Q2 2008 on endowment complaints.

Enterprise Act 2002 - Office of Fair Trading guidance

9 Jul 09 | 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

9 Jul 09 | 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

5 Nov 09 | 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 developments in mortgage policy and regulation

1 Dec 09 | This paper provides an overview of the EU white paper on mortgages, which was published on 18 December 2007 and covers subsequent policy developments. It has been updated to include reference to the latest EU Commission consultation on responsible lending and borrowing plus some additional information on the Commission foreclosure initiative.

EU draft directive on consumer rights

5 Nov 09 | The draft directive on consumer rights has recently been the subject of a consultation by DBERR to ascertain its implications for the UK. It could have some limited impact on UK financial services including mortgages.

European Code of Conduct

9 Jul 09 | Explains what the European Code of Conduct is and its impact for UK lenders.

Financial capability

9 Jul 09 | 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

25 Feb 10 | This page contains information about the FOS and current issues on which we are engaged with the FOS. The page has been updated for members with a summary of new and resolved mortgage related complaints in the second half of 2009. David Thomas, corporate director and principal ombudsman, FOS will be giving the keynote address at our mortgage complaints seminar on 23 March in London.

Financial promotions

9 Jul 09 | This page provides information on how to meet the advertising requirements of the FSMA and CCA regimes.

Financial Services Authority - annual policy documents

17 Feb 10 | 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 has been updated to include a summary of the proposed regulatory fees and levies for 2010/11.

Financial Services Compensation Scheme

22 Feb 10 | This page briefly describes the Financial Services Compensation Scheme and summarises recent consultations concerning the operation of the scheme. The members section has been updated to include the FSCS levies for 2010/11 and some guidance on the treatment of offset mortgages.

Flooding

9 Jul 09 | 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

23 Jan 09 | 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

4 Mar 10 | This page summarises the FSA's information from lenders (IFL) scheme and has recently been updated for members to include details of recent FSA and criminal investigations related to mortgage fraud.

Freedom of Information Act 2000

9 Jul 09 | This page reports two decisions, both relating to the Financial Services Authority, made by the Information Commissioner under the Freedom of Information Act. The most recent update relates to the first of a series of judgments expected.

FSA buy-to-let thematic review

1 Dec 09 | The FSA has shared with lenders a summary of the findings of its thematic review of buy-to-let lending.

FSA stress tests of financial institutions

2 Sep 09 | A summary of the FSA's approach to stress testing following a recent statement from them.

FSA's comparative information tables

1 Dec 09 | This page gives information about the FSA's comparative tables.

FSA's consumer responsibility discussion paper

9 Jul 09 | This page provides a summary of the Financial Services Authority's discussion paper on consumer responsibility.

FSA's Key Facts logo

9 Jul 09 | 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.

Funding developments

24 Apr 09 | 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.

Green mortgages

9 Jul 09 | This page provides some background information on green mortgages.

Home improvement

17 Aug 09 | This update tells you about home improvement loans and the local authority regime for home improvement grants and loans.

Home information packs - recent developments

4 Feb 10 |

Home inspectors and valuations

17 Aug 09 | This page provides information on the possibility of home inspectors with a new valuation qualification providing valuations for lenders.

Homelessness etc. (Scotland) Act 2003

23 Dec 09 | 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.

Homeowners mortgage support scheme (HMS)

27 Oct 09 | The government has launched the Homeowner Mortgage Support scheme(HMS)and announced particpating lenders in the scheme. Updated FAQs are included for lenders. Page updated to attach a letter of comfort from Communities and Local Government.

Homeswaps

17 Aug 09 | 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

23 Dec 09 | 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)

23 Dec 09 | This explains the licensing requirements in Scotland where a rented property is occupied by 3 or more persons.

Housing and Regeneration Act 2008

23 Feb 10 | 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

6 Jan 09 | 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

3 Nov 09 | 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.

Islamic home finance

8 Feb 10 | Background on Islamic home finance and an overview of the issues.

Lending to foreign nationals

9 Jul 09 | 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.

LIFT (formerly HomeStake) - a shared equity scheme operating in Scotland

4 Jan 10 | A shared equity scheme known as LIFT (low cost initiative for first time buyers) 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.

Low-cost home-ownership

3 Feb 10 | Updated to include details of the new shared ownership leases to be implemented by 6 April 2010. The new leases give lenders additional protection and are an improvement on the existing house and flat shared ownership leases.

Modern methods of construction (MMC)

9 Jul 09 | 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

9 Jul 09 | 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

11 Dec 09 | The Money Advice Liaison Group has published its second edition of guidelines for lenders dealing with customers experiencing mental health issues.

Mortgage Code

9 Jul 09 | This page provides a background note on the history of the Mortgage Code.

Mortgage exit administration fees

27 May 09 | This page summarises the FSA's activities in relation to promoting good practice on mortgage exit administration fees.

Mortgage interest direct (MID) and support for mortgage interest

26 Jan 10 | 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. The charge will increase on 1 April 2009. This page has been updated to include information about surplus ISMI payments and to attach a letter from the Department for Work and Pensions on this issue.

Mortgage market review

29 Jan 10 | The CML has now issued its response to the FSA's Mortgage Market Review (MMR) Discussion Paper. We will be working with our MMR steering group, comprising lender firms, to help develop our response to the approved persons section of the FSA's consultation launched on 26 January.

Mortgage payment protection insurance (MPPI)

14 Oct 09 | This pages sets out the detail of the agreement the industry has reached with the FSA for dealing with recent and possible future changes to policy terms and conditions affecting some MPPI customers.

Mortgage regulation – background

9 Jul 09 | Sets out the background to the development of the mortgage regulation regime.

Mortgage regulation – cost transparency of valuation

9 Jul 09 | 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

9 Jul 09 | This summarises the results of the two stages of the FSA's review of the effectiveness of its Mortgages: Conduct of Business (MCOB) rules.

Mortgage regulation - recent developments

2 Mar 10 | This page summarises recent developments on mortgage regulation issues which are not covered on separate pages within our website. Updated for members to include details of the FSA's enforcement penalty framework.

Mortgage rescue in England

4 Sep 09 | The scheme is now live in all local authorities in England. The page has been updated for members to include information on the new fast-track team and guidance on over-reaching that CLG have published.

Mortgage Rescue in Scotland

23 Dec 09 |

Provides a summary of the mortgage rescue schemes in Scotland.

Mortgage rescue in Wales

9 Oct 09 | Provides a summary of the mortgage rescue scheme in Wales. Updated to include a copy of the guidance notes for local authorities for members.

New build

9 Jul 09 | 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

9 Jul 09 | 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.

Payment protection insurance (PPI)

9 Mar 10 | This page has been updated to alert members to the FSA's feedback statement and further six-week consultation on PPI complaints handling, published on 9 March. This is a follow up to the FSA consultation of September 2009.

Policy and market developments in Northern Ireland

1 Dec 09 | This page provides updates on significant developments in Northern Ireland, including the launch of the Commission for the Future of Housing in Northern Ireland.

Possessions register

10 Feb 10 | Provides background and guidance on the CML possessions register.

Pre-action protocol and court rules

2 Mar 10 | This page summarises the position on the Civil Justice Council's mortgage pre-action protocol. It also refers to court rule changes and the Northern Ireland protocol. The final form checklist and guidance for its completion have been provided by the Ministry of Justice and are attached. Ministry of Justice has also provided a copy of the advice sent to District Judges about the checklist. A further change to the court rules is anticipated for 6 April 2010.

Private landlords in Scotland - regulation

23 Dec 09 | 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

23 Dec 09 | 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

17 Aug 09 | 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.

Quantitative easing (QE)

20 Apr 09 | This document provides an explanation of quantitative easing, answering obvious questions on it.

Retail Distribution Review

8 Jul 09 | This page gives background information about the FSA's Review of Retail Distibution, including information on the publication of the consultation document on implementing the review, published in June 2009.

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.

Rome 1 regulation on applicable law: implications for mortgage lenders

5 Nov 09 | 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 and has been formally adopted. The UK Government has now signaled its intention to opt into the regulation from 17 December 2009.

Sale and rent back/ sale and lease back companies

23 Feb 10 | The FSA has published details of its full regulatory approach to sale and rent back, effective from 30 June 2010.

Shortfalls on interest-only mortgages

9 Jul 09 | 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

14 May 09 | 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

14 May 09 | 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.

Sustainable home-ownership initiative: an overview

2 Feb 10 | This overview provides a summary of the the sustainable home-ownership(SUSHO)initiative.

Tenancy deposit protection

1 Dec 09 | This provides an overview of the schemes for tenancy deposit protection introduced on 6 April 2007.

Tenant default - termination of tenancies

2 Feb 10 | The Law Commission has published its proposals and draft bill for reforming the law on the termination of tenancies for tenant default.

The position of tenants when a landlord defaults on their mortgage

29 Jan 10 | This page summarises the issues surrounding enforcement action by lenders when a property is tenanted. A private members bill has been introduced on this issue.

Training and competence

8 May 09 | This page summarises the Financial Services Authority's requirements for staff to be trained and competent to carry out their jobs.

Treating customers fairly

9 Jul 09 | This issue has been updated to draw attention to further guidance issued by the FSA on how it proposes to embed TCF assessments into its supervisory process.

Treating customers fairly: responsibilities of providers and distributors

9 Jul 09 | 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.

Unfair Commercial Practices - EU directive

9 Jul 09 | 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 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

9 Jul 09 | This page summarises the material which the FSA has published in relation to the fairness of terms in mortgage contracts. An update to the members' section to include details of a recent undertaking against the On-Line Partnership Limited.

Valuation advice in repossession cases

3 Sep 09 | This paper, which was prepared by Richard White of Countrywide Surveyors, provides advice to lenders and valuers in connection with the valuation of repossessed properties. members might like to share this information with any asset managers acting on their behalf.

Valuation and survey procedures - simultaneous processes

9 Jul 09 | 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.

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