Mortgages and Home Finance: Conduct of Business Sourcebook

[Pages:584]Mortgages and Home Finance: Conduct of Business Sourcebook

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Mortgages and Home Finance: Conduct of Business Sourcebook

MCOB 1

1.1 1.2 1.3 1.5 1.6

1 Annex 1 1 Annex 2 1 Annex 3 1 Annex 4

Application and purpose

Application and purpose General application: who? what? General application: where? Application to appointed representatives Distinguishing regulated mortgage contracts and regulated credit agreements [deleted] [deleted] [deleted] [deleted]

MCOB 2

Conduct of business standards: general

2.1 2.1A

2.3

2.4

2.5 2.5A 2.6 2.6A

2.7 2.7A 2.8 2.9

2 Annex 1G

Application Regulated mortgage contracts: guidance on the meaning of "payment shortfall" Inducements: regulated mortgage contracts, home reversion plans and regulated sale and rent back agreements High pressure sales: regulated mortgage contracts, home reversion plans and regulated sale and rent back agreements Reliance on others The customer's best interests Exclusion of liability Protecting customer's interests: regulated mortgage contracts, home purchase plans, home reversion plans and regulated sale and rent back agreements Application to electronic media and distance communications E-Commerce Record keeping Restriction on marketing or providing an optional product for which a fee is payable Form of joint instruction letter

MCOB 2A

2A.1 2A.2 2A.3 2A.4 2A.5 2A.6

Mortgage Credit Directive

Remuneration: MCD regulated mortgage contracts Tying practices Foreign currency loans Early repayment Variable rate credits Information free of charge

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MCOB 3A

3A.1 3A.2 3A.3 3A.4 3A.5 3A.6 3A.7 3A.8 3A.9

Financial promotions and communications with customers

Application and purpose The fair, clear and not misleading rules Other general requirements for financial promotions Qualifying credit financial promotions MCD financial promotions Home purchase plan financial promotions Home reversion plan financial promotions Sale and rent back financial promotions Systems and controls

MCOB 3B 3B.1

MCD general information Provision of general information

MCOB 4

4.1 4.2 4.4A 4.5

4.6

4.6A 4.7A 4.8A 4.9

4.10 4.11 4 Annex 3

Advising and selling standards

Application Purpose Initial disclosure requirements Additional disclosure for distance mortgage mediation contracts, distance home purchase mediation contracts and distance regulated sale and rent back mediation contracts with retail customers Cancellation of distance mortgage mediation contracts, distance home purchase mediation contracts and distance regulated sale and rent back mediation contracts Rolling-up of fees or charges into loan Advised sales Execution-only sales Business loans and loans to high net worth mortgage customers: tailored provisions Home purchase plans: sales standards Sale and rent back: advising and selling standards Additional information requirements in respect of distance mortgage mediation contracts, distance home purchase mediation contracts and distance regulated sale and rent back mediation contracts with consumers

MCOB 4A

4A.1 4A.2 4A.3

Additional MCD advising and selling standards

Additional disclosure by MCD mortgage credit intermediaries Adequate explanations Record of recommendation

MCOB 5

5.1 5.2 5.3

Pre-application disclosure

Application Purpose Applying for a home finance transaction

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5.4 5.5 5.6 5.7

5.8 5.9 5 Annex 1

Information on regulated mortgage contracts: general Provision of illustrations Content of illustrations Business loans and loans to high net worth mortgage customers: tailored provisions Home purchase plans Pre-sale disclosure for regulated sale and rent back agreements The mortgage illustration: table of contents, prescribed text and prescribed section headings and subheadings.

MCOB 5A

MCD Pre-application disclosure

5A.1 5A.2 5A.3 5A.4 5A.5 5A.6 5A Annex 1 5A Annex 2

Application and purpose Applying for an MCD regulated mortgage contract Information on MCD regulated mortgage contracts: general Provision of a European Standardised Information Sheet (ESIS) Content of European Standardised Information Sheets (ESISs) Other information European Standardised Information Sheet (ESIS) Instructions to complete the ESIS

MCOB 6

6.1 6.2 6.3 6.4 6.5

6.6 6.7

6.8 6.9 6 Annex 1

6 Annex 2

6 Annex 3

Disclosure at the offer stage

Application Purpose General Mortgages: content of the offer document Mortgages: information to be provided in the offer document or separately Mortgages: offer documents in place of illustrations Business loans and loans to high net worth mortgage customers: tailored provisions Home purchase plans Regulated sale and rent back agreements Distance home purchase plans: information to be provided to retail customers. - Written Pre-offer Document of a regulated sale and rent back agreement. - Cooling-Off Document of a regulated sale and rent back agreement.

MCOB 6A

6A.1 6A.2 6A.3

6A.4

6A.5

MCD disclosure at the offer stage

Application and purpose General MCD mortgages: binding offer, content of the offer document and reflection period MCD mortgages: information to be provided in the offer document or separately MCD distance contracts with retail customers

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MCOB 7

7.1 7.2 7.3 7.4 7.5 7.6 7.7

7.8 7.9 7 Annex 1

Disclosure at start of contract and after sale

Application Purpose General Mortgages: disclosure at the start of the contract Mortgages: statements Mortgages: event-driven information Business loans and loans to high net worth mortgage customers: tailored provisions Home purchase plans Post-sale disclosure for regulated sale and rent back agreements An example of the Total Borrowing section.

MCOB 7A

7A.1 7A.2 7A.3 7A.4

7A.5

Additional MCD disclosure: start of contract and after sale

Application and general Notification of interest-rate changes Early repayment disclosure Foreign currency loans and significant exchange-rate movement disclosure Notification of changes resulting from auctions on the capital market

MCOB 7B 7B.1

MCD: further advances Information to be provided for further advances

MCOB 8

8.1 8.2 8.3 8.4 8.5A 8.6A 8.7 8 Annex 1 8 Annex 2

Equity release: advising and selling standard

Application Purpose Application of rules in MCOB 4 [deleted] Advised sales Execution-only sales Initial disclosure information: unauthorised reversion provider Initial disclosure document [deleted] Combined initial disclosure document [deleted]

MCOB 9

9.1 9.2 9.3 9.4 9.5 9.6

9.7 9.8

Equity release: product disclosure

Application Purpose Pre-application disclosure Content of illustrations Disclosure at the offer stage for equity release transactions Disclosure at the start of the contract and after sale for equity release transactions Disclosure at the start of the contract: lifetime mortgages Disclosure after sale: lifetime mortgages

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9.9 9 Annex 1

9 Annex 2

Disclosure after sale: home reversion plans The illustration: table of contents, prescribed text and prescribed section headings and subheadings The illustration: table of contents, prescribed text and prescribed section headings and sub-headings

MCOB 10

10.1 10.2 10.3 10.4

Annual Percentage Rate

Application Purpose Formula and assumptions for calculating the APR Total charge for credit

MCOB 10A

10A.1 10A.2 10A.3

MCD Annual Percentage Rate of Charge

Calculation of the APRC APRC: mathematical formula and assumptions APRC: additional assumptions

MCOB 11

11.4 11.5 11.6 11.7 11.8

11.9

Responsible lending, and responsible financing of home purchase plans

Application Purpose Responsible lending and financing Transitional arrangements Customers unable to change regulated mortgage contract, home purchase plan or provider Remortgaging with the same or a different lender with no additional borrowing

MCOB 11A 11A.1 11A.2 11A.3

Additional MCD responsible lending requirements

MCD mortgage credit intermediary: submission of information to MCD mortgage lender Prohibition on cancellation or variation of MCD regulated mortgage contract on grounds of creditworthiness Obtaining information for, and assessment of, affordability from the consumer and rejecting an application

MCOB 12

12.1 12.2 12.3 12.4 12.5

MCOB?v

Charges

Application Purpose Early repayment charges: regulated mortgage contracts Payment shortfall charges: regulated mortgage contracts Excessive charges: regulated mortgage contracts, home reversion plans and regulated sale and rent back agreements

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12.6 12.7

Business loans and loans to high net worth mortgage customers: tailored provisions Home purchase plans

MCOB 13

13.1 13.2 13.3

13.4

13.4A 13.5

13.6 13.7

13.8

Arrears, payment shortfalls and repossessions: regulated mortgage contracts and home purchase plans

Application Purpose Dealing fairly with customers with a payment shortfall: policy and procedures Arrears: provision of information to the customer of a regulated mortgage contract Data sharing with other charge holders Dealing with a customer in arrears or with a sale shortfall on a regulated mortgage contract Repossessions Business loans and loans to high net worth mortgage customers: tailored provisions Home purchase plans

MCOB 14 14.1

MCD article 3(1)(b) credit agreements

Handbook provisions which apply in respect of MCD article 3(1)(b) credit agreements

MCOB 15 15.1 15.2 15.3 15.4 15.5

P2P home finance activities

Handbook provisions which apply in respect of home finance transactions entered into via a P2P platform Guidance on the application of MCOB where agreements are facilitated by a P2P platform Further provisions about the application of MCOB where agreements are facilitated by a P2P platform Modifications MCOB provisions disapplied from P2P platform operators

TP 1 TP 4 TP 5 Sch 1 Sch 2 Sch 3 Sch 4 Sch 5 Sch 6

Transitional provisions and Schedules

MCD Transitional Provisions Other Transitional Provisions Transitional Provisions: Regulated mortgage contracts Record keeping requirements Notification Requirements Fees and other required payments Powers exercised Rights of action for damages Rules that can be waived

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