Embedding the Mortgage Market Review: Advice and Distribution TR15/9
The FCA has issued a report (TR15/09) summarising the key findings of its thematic review into the quality and suitability of mortgage advice provided by firms following the implementation of the Mortgage Market Review.
The FCA first published the thematic review on 25th June 2015, but then revised it and republished its findings on 9th July this year.
The MMR made lenders provide advice on mortgage products and this has been a huge challenge, not only having to ensure that their staff passed a suitable mortgage qualification, but also changing the way in which they communicated with customers and transacted mortgage business. It is therefore not surprising that the review revealed cases where suitability could not be demonstrated explicitly. It is likely that the percentage of cases that fall into this category will reduce as lenders continue to adapt to the requirements of the MMR, but illustrates the magnitude of the challenge for lenders - and also for the regulator - in ensuring that the objectives of the MMR are delivered.