All businesses involved in selling mortgages are being sent surveys by the regulator, while some larger companies will be subject to on-site reviews.
Site visits will explore firms’ business models to assess whether they have considered the areas they may need to change as a result of the new rules, which will be implemented on 26 April 2014.
The MMR is introducing sweeping changes to the mortgage market.
Chief among them is that lenders – not intermediaries – will be responsible for affordability checks and verifying borrowers’ income “in all cases”.
Additionally, the regulations officially remove the non-advised sales process, specifically all ‘interactive’ sales such as those done face-to-face or over-the-phone, which must be ‘advised’ sales from April 2014. There are a few exemptions to the rule, including for when a customer is a mortgage professional, a high-net-worth individual, or a business borrower.
The surveys and visits are part of a seven-point communications strategy implemented by the regulator to ensure firms are ready for next year’s deadline.
