MCOB 11A Additional MCD responsible lending requirements

An MCD mortgage credit intermediary must accurately submit any relevant information obtained from the consumer to the MCD mortgage lender to enable an assessment of affordability to be carried out.

An MCD mortgage lender must not cancel, or vary the terms of, an MCD regulated mortgage contract to the detriment of the consumer on the grounds that the assessment of affordability was incorrectly conducted or the information provided by the consumer prior to the agreement of the MCD regulated mortgage contract was incomplete. However, this does not apply where the MCD mortgage lender can demonstrate that the consumer knowingly withheld or falsified information relevant to the assessment of affordability of the MCD regulated mortgage contract.

1. (1)

   An MCD mortgage lender must specify in a fair, clear and not misleading way, in good time before assessing affordability of a MCD regulated mortgage contract, to a consumer:

   1. (a)

      all the necessary information and independently verifiable evidence that the consumer needs to provide; and

   2. (b)

      the timeframe within which the consumer needs to provide the information or evidence.

2. (2)

   A request for information or evidence under (1) must be proportionate and limited to what is necessary to conduct a proper affordability assessment.

3. (3)

   A request for information or evidence under (1) may be made directly or through an MCD mortgage credit intermediary. The MCD mortgage lender or the MCD mortgage credit intermediary, if requesting on behalf of the MCD mortgage lender, must:

   1. (a)

      ensure the consumer is aware of the need to provide correct information in response to the request and that such information is as complete as necessary to conduct a proper assessment of affordability; and

   2. (b)

      warn the consumer that, where the MCD mortgage lender is unable to carry out an assessment of affordability because the consumer chooses not to provide the information or evidence necessary for an assessment of affordability, the credit cannot be granted.

4. (4)

   The MCD mortgage lender may seek clarification, directly or through an MCD mortgage credit intermediary, of the information or evidence received in response to a request under (1), where necessary, to enable the assessment of affordability of an MCD regulated mortgage contract.

1. (1)

   Where an MCD mortgage lender rejects a consumer's application for an MCD regulated mortgage contract, the MCD mortgage lender must inform the consumer without delay:

   1. (a)

      of the rejection and, where applicable, that the decision is based on automated processing of data; and

   2. (b)

      where the rejection is based on the result of the database consultation, of the result of such consultation and of the particulars of the database consulted.

   [Note: article 18(5)(c) of the MCD]

2. (2)

   No obligation under (1) shall be interpreted in a manner which contravenes data protection legislation.