The Financial Conduct Authority (FCA) is challenging lenders to improve their arrears and foreclosure management following a thematic review which found several counts of bad practice at firms.
The regulator said since its last review in 2009 lenders had improved practices and were now treating customers better and offering a wider range of forbearance options. In the context of a mortgage process, forbearance is a special agreement between the lender and the borrower to delay a foreclosure. However, the FCA warned firms needed more flexibility to deliver tailored outcomes for borrowers with more attention paid to the specific personal and financial circumstances of each customer. It said some lenders had failed to adopt proactive and forward-looking strategies to spot bo...
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