FCA and PRA changes to mortgage reporting requirements

In September 2019, the FCA and the PRA published their policy statement (PS) PRA PS 22/19 and FCA PS 19/23 on new reporting requirements which would apply to regulated mortgage lenders and home finance administrators. These policy statements summarise the feedback and the FCA and PRA’s respective responses to the feedback.

The FCA and PRA identified gaps in the data firms submit. The PS seek to address this by increasing the data which mortgage lenders and administrators are required to submit via Product Sales Data (PSD) and to rectify some gaps and inconsistencies in the forms and guidance in Mortgage Lending and Administration Return (MLAR).

The changes will enable the FCA and the PRA to carry out supervisory, enforcement and policy work in a more informed and evidence based manner. It will provide a more complete view on which to base future market studies. This will enable them to more effectively identify and address harm to consumers and competition, and threats to market integrity.

The Bank of England will have an enhanced ability to monitor macro prudential risk in the housing market, helping ensure the stability of the economy and mortgage market.

Firms affected by these changes need to implement the changes within the following timescales:

  • 12 months following publication of this policy statement to implement the performance sales data (PSD007) and MLAR changes (October 2020)
  • 18 months following publication of this policy statement to implement the product sales data report (PSD001) changes (April 2021)