Second Mortgage QualificationsMortgage Qualification Second
To a large extent, our use of the MCD is largely built on our current set of regulations. However, we will make some new demands on companies, among them the need to provide a European Standardized Information Sheet (ESIS) to our clients. You need mortgage approvals if you want to arranging, advising, entering into or managing secondary mortgage loans.
Without the appropriate authorisation, if you engage in a controlled business, you are acting unlawfully and committed a crime. They should know how we want companies to treat and behave with clients. Mortgage and home financing: Business rules (Conduct of Business, MCOB) are designed for home loans and are in some cases more prescriptive rather than required by the CRS.
The main regulations applicable to mortgage brokers include: Compensation (MCOB 2A.1). For the implementation of the MCD, we have also made changes to specialized source books, like this: the MCD is a new source book: As well as these elaborate mortgage-specific regulations, our Handbook establishes high benchmarks that are applicable to all companies subject to regulation, such as our Principles for Business (PRIN) and Senior Management Arrangements, Systems and Controls (SYSC).
It is advisable to advise whether there is an interaction between the company and the client during the sales process or whether consolidating debts is the primary objective of the loans. It is necessary to suggest one or more items that are appropriate for the client, on the basis of your evaluation of their needs and conditions. When there is no appropriate item, you cannot refer to the item that is "least bad".
You do not, however, have to suggest a particular, most appropriate one. There are a number of things you need to think about before making a referral, and that includes whether it is appropriate for a client to make early returns. For mortgage vendors and mortgage advisors, we demand that they obtain a Level 3 equivalent skill.
Everyone who performs these functions on 21 March 2016 shall have until 21 September 2018 to ensure that they attain this level of competence. Companies do not need to expand their service to cover both first and second rate mortgage types, but if your company offers both, it must take these different types of product into consideration when advising.
So if an established mortgage lender wants to lend more, you need to point out to the client that there are other types of lend that can suit their needs. If, for example, a client is considering a second cost mortgage, you need to draw their attention to the fact that they may not be able to receive another upfront.