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National Homeless Advice Service

Fair treatment of mortgage customers in payment shortfall - review period and customers in scope

Posted by Debbie Watson June 16, 2017

FCA published the guidance: The fair treatment of mortgage customers in payment shortfall: impact of capitalisation

The review period for remediation begins on 25th June 2010 when MCOB rules changed to prohibit automatic calculation (except in limited circumstances). Customers in scope are those who had a payment shortfall on a regulated mortgage or home purchase plan to which MCOB 13 applied, where firms automatically included the payment shortfall balance in calculating the CMI during the review period. This includes closed mortgage accounts, and second-charge mortgages where the automatic calculation occurred after 21 March 2016, but will not include buy-to-let mortgages. Firms are expected to complete remediation by 30th June 2018.

(Mortgages and home Finance Conduct of Business)