The CML, in its latest newsletter, reveals lenders are grateful to have been given 18 months to introduce the MMR rules, which will go live on 26 April 2014, as it was envisaged that lenders would have to put the new rules in place within a year of the paper being published.
It said: “We have spent much of the first six months working with the regulatory authorities and firms to clarify the policy intention behind some of the rules to ensure consistency of interpretation. Throughout this process we have been grateful for a collaborative approach between the industry and the regulatory authorities.”
However it described the task of understanding the intentions of the Financial Services Authority, now transformed into the Financial Conduct Authority, as a “major challenge”.
Firms have now begun putting into place systems to operate the new rules and are working closely with the FCA’s implementation team and its supervisors and will soon enter the first phase of the regulator’s process for tracking the progress of firms in making themselves ready.
The CML added: “Clearly implementation of such a comprehensive series of rule changes puts pressure on the resources of lenders. Firms have to prepare for the introduction of the new rules and for Help to Buy while continuing to do business with new and existing customers. There is real competition for resources.
“With a year to go until the new mortgage rules come into force it might seem that firms have plenty of time. But there is a lot to do and many competing pressures in implementing major, overlapping reforms.
“Some of the effects may not be clear until later in the process but we will continue to build on collaborative relationships with the FCA and the Treasury in bringing in the new mortgage rules and the Help to Buy initiative as smoothly and efficiently as possible.”