FSA proposals extend approved persons regime
Amid new measures aimed at protecting mortgage borrowers in arrears and stamping out mortgage fraud, the Financial Services Authority (FSA) is proposing that all mortgage advisers are personally accountable to the regulator.
The Approved Persons’ proposals apply to those advising or arranging non-advised sales in relation to regulated mortgage contracts, regulated sale-and-rent back agreements, home purchase plans and home reversion plans.
Extending the approved person regime should help achieve “a strong, viable and clean marketplace”, the FSA says.
The package also includes proposals that mean lenders will not be able to:
Add early repayment charges on arrears charges and interest levied on those charges.
Apply a monthly arrears charge where the firm and the customer have agreed an arrangement to repay the arrears.
In addition, lenders will have to:
Consider all options for borrowers; repossessions should always be the last resort.
Allocate payments by customers in financial difficulties to clearing missed monthly payments, rather than to arrears charges, which can be repaid later.
Record all arrears handling telephone calls and keep all records for three years.
Category: Financial Services Authority News, Insurance News
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