Niche lenders, back in the driving seat?
The UK lending market is in the grip of a seismic shift, driven by significant M&A activity, choices being made by laggards in the digital transformation race and the regulatory impact of tightening capital requirements. Just like in any market change, adjustments also present opportunities. The changes taking place will be exploited by nimble niche […]
Mortgage Charter Independent Oversight
The FCA has released its first report analysing the impact of the Mortgage Charter. Launched exactly a year ago, the Charter received some negative industry comment, with a number of lenders suggesting that they already had robust forbearance measures in place and it wasn’t needed. However, on any measure, the FCA data shows positive consumer […]
FCA complaints – a worsening picture
Increasing numbers of complaints, and the lack of real resolution by firms, is not new news, but regulators are becoming impatient for change. After years of TCF and more recently Consumer Duty implementation, it is not surprising that they are questioning when they will see improved outcomes. So why are regulators becoming increasingly tired with […]
Another FCA warning shot
The most recent FCA ‘strategy letter’ on consumer lending is one of the most detailed we have seen, and it focuses on three portfolios; high-cost lending, mainstream consumer credit lending and credit unions. This is an unusual step for the regulator, as it normally issues separate letters to each portfolio. However, on this occasion there […]
ESG –the need for independent due diligence until regulation catches up!
Earlier this month our Group Chief Executive and Founder, Brian Pitt, led a panel debate discussing transparency and greenwashing in ESG at the Global ABS conference in Barcelona. The debate was enhanced by the quality of the panel, which benefitted from the insight of European regulators.
Breaking news: Lender forced to half its interest rate
Mortgage regulation has developed over the past 20 years. Previously there was a focus on conduct matters, where senior managers were expected to ‘do the right thing’ in terms of providing services and products that met customer needs at a fair value. Now, there is an evolving situation around product matters specifically. It is now […]
Lending standards, vulnerability and 3 lines of defence
The fair treatment of vulnerable consumers has been high on the FCA agenda for several years as these consumers are at greater risk of financial harm. Recent FCA guidance has been followed by the Lending Standards Board [LSB] releasing the results of a thematic review, considering whether vulnerable customers were receiving fair outcomes at key […]
ESG – the need for data
It is already a month since I spoke at the Global ABS, in Barcelona, on the need for transparency of ESG factors within RMBS. Not surprisingly, we still await agreed ESG reporting standards and mandatory disclosures. Talk about turning an oil tanker around? Such a manoeuvre would appear to be a short moment in time […]
Equity release concerns return
The Times recently ran an article that highlighted issues with equity release/lifetime mortgages. These mortgages have been plagued by negative connotations and even litigation ever since the first home income plans appeared in the 1980’s. All subsequent variations of the original schemes have suffered their own issues. However, what made this article more worrying was […]
Affordability stress tests – should funders be concerned?
While the Financial Policy Committee decision to drop lender affordability stress tests was expected, it is difficult to find articles that support the timing of the decision. When the restrictions were introduced in 2014, the intention was to prevent general loosening of credit assessments with the worry that reckless lending could cause an economic downturn […]
