The FCA published this month of May a speech by Jonathan Davidson, FCA Director of Supervision: retail and authorisations, on building societies and the future of retail banking.

Points of interest for mortgage brokers include:

• While the FCA considers that the industry is doing "reasonably well" on affordability, the Bank of England recently called out some early warning signs of relaxation of lending standards. This is backed up by the FCA's own data, which shows that the proportion of lending at higher loan-to-income ratios is creeping up. 
• The FCA is monitoring mortgage account arrears. It worries about the extent of forbearance being offered in cases where the borrower has no realistic chance of getting back on track. It is currently investigating this issue and will publish its findings later in 2018.
• The FCA is looking at how firms are dealing with the payment of support for mortgage interest changing from a benefit to a loan and the treatment of borrowers who do not opt for the loan who subsequently fall into arrears.
• The FCA wants to build on the progress that has been made on advice and suitability, and work with the industry to consider what more can be done to help customers obtain the best deal.
• The FCA is considering the fair treatment of customers who do not or cannot switch mortgages. It plans to engage with the industry and consumers to explore possible options for helping these customers.

Mr Davidson's speech follows the FCA's publication of its interim report on its mortgages market study on 4 May 2018.