FCA: Brokers more prepared for MMR than lenders
In a survey released by the regulator to track readiness for the new rules, lenders lagged behind brokers but the FCA said this was “understandable” as their exposure to the changes was greater.
Linda Woodall, director of mortgage and consumer lending, said: “MMR bites down on lenders more than intermediaries so it is understandable that they may not be as ready.
“There are a significant number of tasks which lenders must undertake which are more complex than those which must be undertaken by intermediaries.”
The FCA was most impressed by mainstream lenders’ preparations for the new, more robust affordability assessment which will be required of them under the new rules.
Woodall said: “Mainstream lenders have made really good progress in this area they really know what they have to do.
“It is a big task for them in terms of staff training and the installation of systems to cope with the new assessment so we are pleased with the preparations they have made so far.”
But Woodall said the findings highlighted that non-banks and niche firms required more help in this area.
She added: “Non-banks and niche lenders have asked for extra help to interpret the rules and for more guidance around the new prudential requirements.
“We will be making more information available to them next month.”
The response rate to the survey, sent to 5600 firms in May, was 68% which Woodall said the FCA was “really pleased” about.
And while the results showed that preparations were not perfect firms had made “significant progress”.
Of the 68% of respondents two thirds of firms are on track while the remainder are still had work to do.
Woodall said: “We believe that the third of firms which are lagging behind can be ready if they act quickly now to draw up a plan and act on it immediately. Help will be on hand from the FCA.”
Workshops will begin in October and will run through into November based on the findings of the survey. Face-to-face surgeries will begin in February as the last point of communication prior to the April deadline.