CP18/41: FCA and PRA changes to mortgage reporting requirements

Open consultation: CP18/41
Consultation closes
Consultation feedback and final rules
Q3 2019

In this consultation paper (CP), the FCA and the Prudential Regulation Authority (PRA) set out proposals for new reporting requirements that would apply to mortgage lenders and home finance administrators.

Read CP18/41 (PDF)

The FCA and PRA have identified a number of areas where we believe further data are needed from firms. This CP seeks to address those gaps by setting out proposals to increase the data which mortgage lenders and administrators are required to submit via Product Sales Data (PSD) and Mortgage Lending and Administration Return (MLAR).

The CP contains proposals made solely by the FCA in relation to our objectives as well as joint proposals that are given effect through a combination of PRA and FCA rules.

We appreciate that changes to reporting systems can be costly for firms. We are making every effort to limit the frequency of changes to MLAR and PSD. This is why the FCA and PRA are consulting on these proposals as a package.

These data support the FCA in meeting our operational objectives by allowing us to identify and address potential harm to consumers as part of ongoing firm supervision. They also support wider thematic work and competition studies, for example the recently published Mortgage Market Study.

The FCA also shares these data with the Bank of England and the PRA. The Bank of England and the PRA use these data to monitor macro-prudential risk in the housing market, including informing the considerations of the Financial Policy Committee (FPC). The PRA also uses these data to support firm supervision. 

Who this applies to

This consultation will be directly relevant to:

  • mortgage lenders
  • home finance administrators
  • entities which own mortgage books but which are not authorised to lend

This consultation will also be relevant to stakeholders with an interest in the mortgage and home finance market, including:

  • trade bodies representing home finance firms
  • charities and other organisations

The proposals set out in this CP relate to the information that we collect from certain regulated firms. It is unlikely to be of direct interest to consumers.

Next steps

This consultation has now closed. We will publish feedback on responses and issue a Policy Statement once we have reviewed your comments.