The mortgages and home finance: conduct of business sourcebook section of the handbook, referred to as 'MCOB', evolved out of the regulation of regulated mortgage contracts by the Financial Services and Markets Act 2000. The regulated mortgage contracts constitute an extremely significant class of loans. They are defined as loans secured by a first charge over land in which at least fourty per cent of the land used as security must be used in connection with a dwelling for use by the borrower. Such loans, include loans for use for the purchase of a home. MCOB applies to any firm that carries on what is referred to as a home finance activity, which is defined to include entering into or administering or mediating regulated mortgage contracts, home purchase plans, home reversion plans or sale and rent back agreements. The application of MCOB is affected when a regulated mortgage contract is entered into for a business purpose.