Key Fact Sheets Standard Home Loans

Key Fact Sheets for Standard Home Loans

Text Box: Key Fact Sheets will have to be provided by lenders in respect to standard home loans as from 1 January 2012. A standard home loan is a loan to purchase or refinance residential property. Regulations will shortly be released giving further detail on the content of the Key Fact Sheets (KFS) and other related matters. It is opportune to revisit this new legislation. Importantly, the government is considering whether to extend the requirement to provide KFS’s to brokers and other third parties intermediaries (such as mortgage managers) (either in addition to lenders or in substitution). Lenders will need to develop and implement IT systems and procedures to comply with the new requirements, which in summary are: KFS for standard home loans required to be available on lenders website and also provided on request. KFS needs to be capable of being tailored to suit borrower circumstances. Mechanism needs to be implemented to gather extra further information from potential borrowers where information initially supplied is not sufficient to generate KFS containing all the relevant data. The precise requirements of KFS’s for standard home loans will be in the regulations to be released shortly. Richard Williams, Partner, Banking Services MacGillivrays Solicitors Link to printable version of this Banking Services Alert

Friday 29 August 2011

Banking Services Alert