The Financial Service Authority (FSA), appointed the FCA, introduced the Mortgage Market Review (MMR) to reform the mortgage market. The MMR rules affect intermediaries and lenders differently.
The MMR aims to make the mortgage market more sustainable and ensure continued access to affordable mortgages while limiting high-risk lending and borrowing so the market can work better for consumers.
Our Mortgage Market Review Course explains how the FCA reformed the mortgage market with new affordability and responsible lending rules, the distinction between advice and execution-only sales and professional standards.
Available as part of our FCA Compliance Library.
This course will prepare your employees to:
- Exercise: Overall aims of MMR
- What does MMR mean for you?
- Exercise: Stakeholder responsibilities
- The affordability rules
- Exercise: The rules on income verification for the self-employed
- Types of expenditure
- Making the right decision on expenditure
- Exercise: The relationship between expenditure & affordability
- Affordability data
- Examples of a simple affordability calculation
- Affordability data revised
- Using income multiples
- Interest-rate stress tests
- Interest-rate issues
- Exercise: Applying the rules in practice 1
- Exercise: Applying the rules in practice 2
- What is a 'credible repayment strategy'?
- Exercise: Speculative repayment strategies
- Implementing an interest-only policy
- Exercise: Implementing an interest-only policy
- You make the call: Interest-only mortgages
- Exercise: The rules on interest-only mortgages
- Contract variations & transitional arrangements
- Exercise: Contract variations & transitional arrangements
- Checklist: Transitional arrangements
- Fair treatment of existing borrowers
- Exercise: Fair treatment of existing borrowers
- New requirements help mortgage prisoners switch mortgages
- Systems & controls
- Payment shortfalls
- Exercise: Setting fees
- Exercise: Concessionary rates for borrowers with payment problems
- Checklist: Payment shortfalls
- Exercise: Good & poor practice in arrears management
- Enforcement: Charges for payment shortfalls
- Exercise: What is advice?
- Checklist: Are you giving advice?
- Information versus advice
- Exercise: Providing advice to customers
- Exercise: Lawrence's renewal
- Rejecting advice
- Rules for proceeding on an execution-only basis
- Exercise: Vulnerable customers
- Contract variations
- Exercise: Abi switches products in-branch
- Exercise: European Standardised Information Sheet (ESIS)
- Wealth & affordability
- Checklist: HNW mortgage customers
- Exercise: Isha's business loan
- High-level approach for business lenders
- Checklist: Business lenders
- Bridging loans
- Exercise: The rules on bridging loans
Approximately 75-minute long e-learning course followed by a 10-question assessment.
Suitable for all staff - examples and interactivities designed for staff at all levels. No previous knowledge or experience is required.
SHARD-compliant, responsive display on all devices, accessibility on screen readers, visual design controlled via a client style sheet.
Ability to offer optional test-out, whereby users can choose to skip the course content and complete the learning assignment simply bypassing the assessment.
All Windows, Mac OSX, iOS, Android (Flash-free for mobile compatibility). AICC and SCORM 1.2-compliant, suitable for both hosted and deployed SCORM or AICC.
Fully customisable on Skillcast Portal CMS.
Pre-translated versions not available, but all text content can be exported for translation into all languages.
Based on UK legislation, but suitable for global audiences upon the removal of UK-specific references and translation as necessary.