The FSA has published near-final post-sale rules - the only part of the draft rules presented in CP98 to survive the last year's decision to extend the scope of mortgage regulation to include mortgage intermediaries.
Draft rules in CP98 related only to lending and administration, but the FSA says the “change in scope of mortgage regulation does not affect our post-sale proposals”.
In its just-published Policy Statement on CP98, the FSA gives the scope of post-sales rules.
- start of contract disclosure - requiring firms to give consumers standardised mortgage information at the start of the contract
- post-sale disclosure - firms must provide annual statements, containing confirmation of any redemption penalties, details of the transactions that have taken place together with interest rates applicable, the amount outstanding and details of any tied products
- rules on contract charges - these relate to exorbitant charges generally, and early repayment and arrears charges specifically
- arrears and repossessions - these rules cover arrears policy and procedures. Mortgage administrators are required to provide an FSA information sheet to customers when they first enter arrears.
Revised proposals for pre-sales rules are laid out in CP146.