Mortgage Lenders ukUnited Kingdom Mortgage Lenders
Facts from the regulated mortgage survey provided by the Council of Mortgage Lenders.
QAAD is the quality control of management information for Regulated Mortgage Survey information used in the preparation of the UK House Index (UK HPI). HPI is the UK House Prices Index that tracks the changes in the value of housing in the UK. The compilation of the HPI involves the use of various management records using a technology known as a hedonic regression.
Simply put, Hemonic Recression is a technology that takes into account the varying qualities of the properties purchased in each accounting cycle to simply quarantine the mere variation in prices, so that the variation in prices is not biased by variations in the mix of properties purchased (e.g. the prices of a one-bedroom house purchased in one accounting cycle cannot be directly compared to a three-bedroom house purchased in another).
The UK HPI is compiled from a wide range of admin information covering the prices of transacting real estate (such as the HM Land Registry's Pricepaid Dataset for England and Wales), the properties' properties' attributes such as the Council Tax Valuation List managed by the Valuation Office Agency, and features related to the properties' locations (such as the nature of the neighborhood in which the properties are located as determined by the ACORN rating of Consolidated Analysis Centers, Inc.
The present paper focuses on Regulated Mortgage Survey (RMS) information provided by the Council of Mortgage Lenders. It is not used every single month as a pricing feature within the UK HPI framework. Rather, it is a datasource that is used in the construction of the weight to enable the division of first-time buyers and former owner-occupiers.
Regulated Mortgage Survey information is used to calculate UK HPI weightings, which are annually up-dated. These RMS files are compared with other RMS files (e.g. the HM Land Registry) at addressing levels. Unsurpassed mortgage record purchaser credit is calculated using the closest neighbor's credit.
Generating and publishing housing prices can be regarded as a middle section, as users and journalists are more interested in the results produced with modest economical or policy caution. Regulated Mortgage Survey information provided to ONS by the Council of Mortgage Lenders is not used every month as a pricing feature within the UK HPI framework.
Rather, it is a datasource that is used in the construction of the weight to enable the division of first-time buyers and former owner-occupiers. A good assessment exists of the contexts in which the information is gathered and the qualitative standard of the information we collect meets our statistics requirements. That means that for this datasource a fundamental to increased security is necessary.
RMS is the Council of Mortgage Lenders' Mortgage Product Sales Database (PSD), which all creditors subject to regulation submit to the Financial Conduct Authority (FCA). Details at transactions stage of mortgage transactions. Since April 2005, the RMS has contained over 12 million unique mortgage sales datasets.
This is recorded by electronic means, with all companies filing according to the FCA definition and in a standardised Excel spreadsheet to ensure a uniform information architecture. Estimates of collateral cover are around 95% of all currently mature regulatory mortgage loans. Some lenders, however, do not allow their information to be disclosed to third party third party providers, such as others such as others, so that the proportion of information they receive is around 70%.
Anticipated impacts are small as the breakdown of information obtained is similar to all mortgage sales recorded by the land registry. The report includes information on the sales prices, the date of completing the real estate transaction, the nature of the debtor (First-time Buyer (FTB) or Home Mover), new or used real estate, and the nature and extent of the apartment.
RMS is the only complete datasource (to which we have access) for the nature of the borrowers and provides the necessary information to produce the new HPI, depending on whether the purchaser is a first purchaser or an established owners. ONS currently receives the Regulated Mortgage Survey through the Council of Mortgage Lenders.
Through the Financial Conduct Authority (FCA), which uses the power of the Digital Economy Act, Novartis will proactively seek to obtain immediate acces to the same information. Doing so may increase the cover of the incoming information. There is a agreement between SNS and the Council of Mortgage Lenders to provide a one-month supply of Regulated Mortgage Survey transactions Tier 1 information.
These include information requests, information transmission processes, privacy and a scheduling agreement. E-mail communication and phone calls are used for other uses, such as changing the form of information we receive. Regulated Mortgage Survey is an accurate copy of the FCA's product sales date requirement.
Multiple levels of validations are used on the entered information. File size checking is performed at the input point, any file that does not confirm this default size will be declined. Once the system has been loaded, a second layer of validations is performed on the information. Highly low reviews of variable such as real estate acquisition prices and individuals' incomes are also used.
For more information on the validations used, see the Financial Conduct Authority (FCA) datareference guidelines. Validity is enforced on each month's record obtained from the Council of Mortgage Lenders. There are several ways to make sure that mistakes in the incoming month-by-month information are minimized: Corrected month-by-month records are then aggregated into an year-by-year record, which is then cross-checked with other information resources by zip code and associated contact information.
RMS is the only complete datasource available for the nature of the borrowers and provides the necessary information to create the new HPI, depending on whether the purchaser is a first purchaser or an established proprietor. There are however some recognised restrictions in the data:
Only mortgage information is used for this purpose, as such spot purchases are not possible. As a result of limitations in the exchange of information, the proportion of mortgage information ONS receives is around 70%. ONS will proactively seek to directly obtain the same information through the Financial Conduct Authority (FCA) using the Digital Economy Bill power, as mentioned in this paper.
Doing so may increase the cover of the incoming information. Overall, we consider the Regulated Mortgage Survey to be a good resource for the purposes for which it is used.