COVID-19 – FCA updated draft guidance on mortgages and payment holidays
Regulatory Updates | 22/05/20
The Financial Conduct Authority (FCA) has published updated draft guidance on mortgages and payment holidays for consultation. The guidance, which will expire on 31 October 2020, applies to mortgage lenders, mortgage administrators, home purchase providers and home purchase administrators. It covers:
• customers who have not yet had a payment deferral
• customers who had a payment shortfall prior to 20 March 2020
• the fair treatment of customers at the end of a payment deferral period
• understanding customers’ needs and circumstances at the end of a payment deferral period
• customers able to resume full payments, and those unable to do so
• the interaction of the guidance with MCOB provisions
• training, monitoring, record keeping and credit reference reportin;
• repossessions
• debt help.
The FCA seeks feedback on the draft guidance by 5pm on 26 May 2020, and aim to publish its final guidance quickly, with it coming into force shortly after.
