MCOB 13.1 Application
Who?
This chapter applies to a firm in a category listed in column (1) of the table in MCOB 13.1.2 R in accordance with column (2) of that table.
Table: This table belongs to MCOB 13.1.1 R
(1) Category of firm |
(2) Applicable section |
mortgage lender, and a firm that was a mortgage lender before the sale of a repossessed property |
MCOB 13.1-MCOB 13.3, except for MCOB 13.3.9 R and MCOB 13.3.10 G |
mortgage administrator, and a firm that was a mortgage administrator before the sale of a repossessed property |
whole chapter |
What?
This chapter applies with respect to administering a regulated mortgage contract and administering a mortgage shortfall debt.
The requirements in MCOB 13 will continue to apply to a firm after a regulated mortgage contract has come to an end following the sale of a repossessed property. References in this chapter to "customer" will include references to a former customer as appropriate.
The FSA expects a firm to treat a mortgage shortfall debt in the same way that it treats a payment shortfall.
A firm may have entered into a mix of regulated mortgage contracts and non-regulated mortgage contracts with a customer secured on the same property. In such circumstances, if the regulated mortgage contract is in arrears, notwithstanding that the overall position in respect of the mortgages generally is not in arrears, the firm will need to comply with all the requirements of MCOB 13 in respect to the regulated mortgage contract. Where this involves providing the customer with information, a firm should explain, if it is the case, that whilst the overall position on the mortgages is not in arrears, no action will be taken in respect of the regulated mortgage contract.
If a firm has entered into more than one regulated mortgage contract with the same customer secured onthe same property, the firm may treat all of the regulated mortgage contracts as one for the purposes of MCOB 13.