Product sales data: new mortgage requirements: performance data FAQs

Read FAQs which apply when PS 19/23 comes into effect

Performance data

Q: Should performance data be reported for mortgages granted before October 31 2004 (eg unregulated mortgages and first charge mortgages regulated under the Consumer Credit Act)?

A: Performance data should only be reported for regulated mortgage contracts.
 

Q: How is performance data reported where a mortgage is made up of both regulated and unregulated parts?

A: The rules do not require firms to report the non-regulated part(s). However, for data analysis reasons, our preference is for firms to report the total balance of all parts of such mortgages in the performance data (whether regulated or not). Apart from that, apply the usual rules, eg report the characteristics of the largest part (even if it is the non-regulated part).
 

Q: Where a mortgage has multiple parts, which part is reported where the largest part has changed between reporting periods? (eg because the borrower has made overpayments on one part)

A: The largest part should be reported. This may change over time, and so may be a different part to previous reporting periods.
 

Q: What should be reported for ‘original transaction reference’ in performance data if the original transaction reference is not known?

A: If you are not able to identify the transaction reference used on the original PSD sales data return, then as per the Handbook notes, you should report a current unique reference for the transaction (eg account number) that can be used to identify the account in future. We will use the transaction reference not only to match the account in the performance data with the original sales data transaction, but also to identify the account in future performance data returns. So it is very important that firms report the same transaction reference number for each individual account going forward.
  

Q: What should be reported for ‘Date of start of most recent instance of arrears’ in the first performance data report (due to be submitted within 30 working days of the end of the second quarter of 2015) for historic accounts that may have been in and out of arrears for a long time?

A: We recognise that retrieving the start date for cases already in arrears might be difficult, so where the most recent instance started before 1 January 2015, you can report either 1 January 2015, or the actual start date if you know it (as per note (7) on page 8 in PS12/16). Going forward, the same date should be reported for each period during which the same instance of arrears continues (including the reporting period where the arrears are cleared). If the account enters arrears again, the start date of the new instance of arrears should then be reported.   
 

Q6: If the status of an account varies during a reporting period, how is this reported, eg if there is a payment shortfall or arrears during the period, but these are cleared by the reporting date?

A: For ‘current amount of payment shortfall’ report the situation on the reporting date. So if the account has been in payment shortfall during the reporting period but is up to date on the reporting date then do not report a payment shortfall. However, for ‘date of start of most recent instance of arrears’, report the start date of arrears even if the arrears have been cleared during the reporting period (because the rules require this to be reported for the reporting period in which the arrears are cleared).
 

Q: Where an interest-only mortgage has been extended in the reporting period beyond the original term, should the date on which the term extension was put in place also be reported?

A: Yes, we expect the date to be reported for this type of case.
 

Q: When should we stop reporting the 'date of start of most recent instance of arrears' field for a mortgage no longer in arrears?

A: This field should be populated up to and including the reporting period in which the arrears are cleared in full with no remaining payment shortfall. Once the mortgage is brought up to date, firms no longer need to report this field until such a time that the mortgage re-enters arrears.
 

Q: For lifetime mortgages, what should be reported against the 'original term of mortgage loan (in months)' and 'remaining term of mortgage' fields?

A: In each PSD performance return, firms should populate these fields with a value of 9999 for lifetime mortgages. (The 'term of mortgage in months' field in the sales data return does not need to be reported for lifetime mortgages.)

 

 

FAQs which apply when PS19/23 comes into effect

 

Q: Which mortgages should be reported in the Product Sales Data performance (PSD007) returns?

A: PSD performance data must be reported for all regulated mortgage contracts.  Reports covering data from 01 January 2021 must include regulated mortgage contracts, whether they are owned by firms which are FSMA authorised or not.
 

Q: How is performance data reported where a mortgage is made up of both regulated and unregulated parts?

A: The rules do not require firms to report the non-regulated part(s). However, for data analysis reasons, our preference is for firms to report the total balance of all parts of such mortgages in the performance data (whether regulated or not). Apart from that, apply the usual rules, eg report the characteristics of the largest part (even if it is the non-regulated part).
 

Q: Where a mortgage has multiple parts, which part is reported where the largest part has changed between reporting periods? (eg because the borrower has made overpayments on one part)

A: The largest part should be reported. This may change over time, and so may be a different part to previous reporting periods.
 

Q: Should second charge mortgages be reported which were entered into before 01 April 2017?

A: Second charge mortgages entered into before 01 April 2017 do not need to be reported.
 

Q: My firm is no longer lending. Do we need to report performance data?

A: Yes, if you have regulated mortgage contracts. If you have no regulated mortgage contracts, then you must submit a nil return. 
 

Q: Are debt shortfalls which are bought by credit services firms in scope of PSD reporting?

A: Shortfall debts on regulated mortgage contracts must be reported in the performance report PSD007.  Other conduct standards such as those in MCOB 13 apply and this has always been the case.  It makes no difference to the status of the contract as to whether the property in question has been repossessed - if it was a regulated mortgage contract then it continues to be so.
 

Q: Where a property has been repossessed, and the account remains in debt shortfall, but is closed (by ‘Firm A’) and sold on (to ‘Firm B’), how should the account be reported under PSD007?

A: Firm A should report the account as closed using the appropriate code under data item “Reason for closure of account” (ie ‘P= repossession’). 
Firm B should report performance data to us as the account was a regulated mortgage contract and it therefore continues to be so. Our rules (SUP 16 Annex 21) state: “Performance data should continue to be reported until the account in relation to the loan (or in relation to the final part of the loan outstanding) is closed or there is only a nominal balance outstanding on the account (ie where a mortgage account remains open with a nominal balance for administrative reasons).”
 

Q: Which performance reports need to include additional information concerning the identity of legal and beneficial owners as well as whether the account is part of a closed book.

A: Reports covering data from 01 January 2021 need to include this information where it is relevant.
 

Q: Are the names of any SPVs required?

A: No, the names of SPVs are not required. As set-out in the reporting rules, the text ‘SPV’ is sufficient.
 

Q: Which firm is responsible for submitting PSD007 performance data reports?

A: The reporting rules in force for PSD007 from 01 January 2021 make clear that the firm that entered the regulated mortgage contract is responsible for reporting PSD007.  However, where the rights of the lender to receive payments under the regulated mortgage contract pass to another person (eg where the mortgage has been sold), then the administrator will be responsible for reporting PSD007.  This will be the ‘Principal’ rather than ‘Other’ administrator.
 

Q: If a third party administrator ceases administering mortgage books, does it need to provide a nil return?

A: Third party administrators can submit a single performance report, which covers all the regulated mortgages books they administer.  A nil return would only be required if the administrator ceases to administer all those mortgage books.  Where some regulated books continue to be administered then a performance report continues to be required.
 

Q: When should an account be reported as part of a ‘closed book’?

A: Our reporting rules make it clear that the account should be reported as part of a closed book if the book is closed to new business.  
This will be the case where the only new funds transferred to the account or the book are further advances to the customer or existing customers within the book, but the customer is not able to change to a new product type or switch interest rate types.

This would include mortgage books owned by unauthorised persons, mortgage books owned by authorised persons whose permission does not include the regulated activity of entering into a regulated mortgage contract, and mortgage books where the owner has permission to carry on the regulated activity of entering into a regulated mortgage contract but is not exercising it in relation to the mortgage book or customers within the book.
 

Q: What should be reported for ‘original transaction reference’ in performance data if the original transaction reference is not known?

A: If you are not able to identify the transaction reference used on the original PSD sales data return, then as per the Handbook notes, you should report a current unique reference for the transaction (eg account number) that can be used to identify the account in future. We will use the transaction reference not only to match the account in the performance data with the original sales data transaction, but also to identify the account in future performance data returns. So it is very important that firms report the same transaction reference number for each individual account. 
 

Q: If the status of an account varies during a reporting period, how is this reported, eg if there is a payment shortfall or arrears during the period, but these are cleared by the reporting date?

A: For ‘current amount of payment shortfall’ report the situation on the reporting date. So if the account has been in payment shortfall during the reporting period but is up to date on the reporting date then do not report a payment shortfall. However, for ‘date of start of most recent instance of arrears’, report the start date of arrears even if the arrears have been cleared during the reporting period (because the rules require this to be reported for the reporting period in which the arrears are cleared).
 

Q: Where an interest-only mortgage has been extended in the reporting period beyond the original term, should the date on which the term extension was put in place also be reported?

A: Yes, we expect the date to be reported for this type of case.
 

Q: When should we stop reporting the 'date of start of most recent instance of arrears' field for a mortgage no longer in arrears?

A: This field should be populated up to and including the reporting period in which the arrears are cleared in full with no remaining payment shortfall. Once the mortgage is brought up to date, firms no longer need to report this field until such a time that the mortgage re-enters arrears. 
 

Q: How should retirement interest-only (RIO) mortgages be reported in Performance Data?

A: As follows:

  • ‘Original term of loan’ should be reported as 9999 (mortgage term is not relevant for a retirement interest-only mortgage, therefore ‘9999’ should be inserted as a dummy value instead); 
  • ‘Remaining term of mortgage’ should be reported as 9999 (mortgage term is not relevant for a retirement interest-only mortgage, therefore ‘9999’ should be inserted as a dummy value instead); 
  • ‘Months past maturity’ should be reported as ‘0’; 
  • ‘Current method of repayment’ should be reported as ‘I’ = interest-only.
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