ESG mortgages, FCA ups the stakes!
In our last blog we focused on the fact that RMBS investors are genuinely becoming more ESG focused. This is partly because of the premium that underpins a green transaction (the ‘greenium’), but also because regulators are starting to drive green issues. The latter was brought back into focus in a recent FCA ‘Dear CEO’ letter to Retail Mortgage Lenders.
The FCA has helpfully refreshed its ESG strategy, setting out its target outcomes and the actions that it will take in 2022. The tightening of FCA requirements will not only affect the manufacturers of mortgages, but the enhanced requirements will also influence future investors and investment strategies. Where ESG is concerned lenders and investors can no longer sit on the fence.
Vulnerable customers; how good are your policies?
With the New Year upon us, a high percentage of individuals and families are relying on borrowing money and extending credit to meet higher than normal outgoings incurred at Christmas and the extended holiday period. Some customers at this time of year can often experience financial hardship. It is also true that many providers of […]
Staffing Services for new entrants
With the mortgage lending sector now firmly recovered, new lenders have come to market, bringing new methods of risk assessment, backed by innovative technology solutions. However, the value of experienced staff in the form of underwriters, collectors and compliance experts has not changed. One of the key findings of the MMR was that the regulatory […]
Are Customers in Arrears Being Treated Fairly?
Lenders and third party servicers will be interested in the contents of the recent Financial Conduct Authority (“FCA”) consultation paper – which has been published as a prequel to issuing guidance around the treatment of customers in arrears. In June 2010, the Financial Services Authority ruled that lenders must not automatically capitalise arrears. Instead, lenders […]
Asset Sales Continue to Stimulate Market
The buoyant market continues, for the private equity firms who use securitisation as one of their funding sources. High street banks, driven by capital realignment, remain focussed on offloading mortgage portfolios originated in the run up to the financial crisis. Additionally, the UK Government is pressing ahead with its ongoing programme of asset disposals from […]
Senior Managers and Certification Regime (SM&CR) Update
With the legislation over six months old, a review has been commissioned by the Financial Conduct Authority (FCA) and some significant changes have been proposed. The FCA is now seeking feedback on new regulations that will extend the oversight responsibilities placed on senior executives and non-executives at UK banks and insurance companies. A number of […]
Mortgage Market Study and Working Together
There were raised eyebrows recently when the Financial Conduct Authority (“FCA”) announced another mortgage market ‘review’, this one entitled a mortgage market study (“MMS”) which is due to take place in Q4 of 2016. This follows feedback it received when asking for commentary on areas of the mortgage sector where competition may not be working […]
Changing times…
Changes, whether they have been in regulation, oversight or in business practices are inevitable but, on the whole they have been positive and progressive. Enhancements in consumer protection and routes for redress are very good examples. However, we should always ask ourselves whether we have learnt from our past mistakes and made the right changes […]
Independent Reviews – Their Increasing Importance
As can be seen by the recent publication of The Treasury Committee report focussing on the various ‘inquests’ into the failure of HBOS plc, independent reviews of businesses, processes and risk positions are back in the news. The debate has now changed direction, including the resurrection of the idea of splitting the oversight of enforcement […]
Securitisation opportunities v asset risk
2016 has been an interesting and difficult year so far for the securitisation market and bonds are trading at their lowest levels for five years. However, the market is resilient and new re-financing opportunities appear regularly. The ever increasing success of the Peer 2 Peer (P2P) lending platforms is an example. The attraction for the […]
