EC Consults on Review of Mortgage Credit Directive
The European Commission (EC) launched a public consultation on the review of the Mortgage Credit Directive, with the feedback period ending on February 28, 2022. This consultation will look at possible barriers to the cross-border provision of mortgages and whether the rules remain fit for purpose in light of new developments such as digitalization and sustainable finance.
The public consultation via backward- and forward-looking questions aims to identify the need for action on possible solutions or options and their impact and is:
- seeking views on the functioning of and possible improvements to the existing framework
- aiming to assess whether current rules are adapted to new challenges, in particular digitalization, the need to enhance sustainability, and the COVID-19 crisis
- seeking to ensure that existing rules continue to guarantee a high level of consumer protection, further the aims of the single market, and contribute to financial stability
The Mortgage Credit Directive applies to all loans made to consumers for the purpose of buying residential property. It includes an obligation for lenders to provide clear and detailed information on loan conditions to consumers and to assess the creditworthiness of consumers according to common European Union (EU) standards. The Directive also includes provisions on common quality standards and business conduct principles for all EU lenders and on the right for consumers to repay credit earlier than determined in a contract. It includes an EU passport scheme that allows credit intermediaries authorized to operate in any EU country to deliver services across the EU.
Related Links
Comment Due Date: February 28, 2022
Keywords: Europe, EU, Banking, MCD, Mortgage Credit Directive, Lending, Sustainable Finance, ESG, Credit Risk, EC
Related Articles
APRA Penalizes Heritage Bank for Incorrect Reporting of Capital
The Australian Prudential Regulation Authority (APRA) found that Heritage Bank Limited had incorrectly reported capital because of weaknesses in operational risk and compliance frameworks, although the bank did not breach minimum prudential capital ratios at any point and remains well-capitalized.
OSFI Releases Annual Report 2021-2022
The Office of the Superintendent of Financial Institutions (OSFI) released the annual report for 2020-2021.
APRA Finalizes Guidance on Management of Climate Change Risks
The Australian Prudential Regulation Authority (APRA) released the final Prudential Practice Guide on management of climate change financial risks (CPG 229) for banks, insurers, and superannuation trustees.
EBA Publishes Single Rulebook Q&A Updates in November 2021
The European Banking Authority (EBA) Single Rulebook Question and Answer (Q&A) tool updates for this month include answers to 10 questions.
EC Proposes New Measures Under Capital Markets Union Package
The European Commission (EC) has adopted a package of measures related to the Capital Markets Union.
European Council Adopts Position on Digital Finance Package Proposals
The European Council adopted its position on two proposals that are part of the digital finance package adopted by the European Commission in September 2020, with one of the proposals involving the regulation on markets in crypto-assets (MiCA) and the other involving the Digital Operational Resilience Act (DORA).
PRA Proposes Rulebook Changes; BoE Extends BEEDS Testing Window
The Prudential Regulation Authority (PRA) is proposing, via the consultation paper CP21/21, to apply group provisions in the Operational Resilience Part of the PRA Rulebook (relevant for the Capital Requirements Regulation or CRR firms) to holding companies.
FED Outlines Lending Conditions and Supervisory Activities in H1 2021
The Board of Governors of the Federal Reserve System (FED) published a report that summarizes banking conditions in the United States, along with the supervisory and regulatory activities of FED.
EBA Publishes Standards to Calculate Risk-Weights of CIUs Under CRR
The European Banking Authority (EBA) published the final report on draft regulatory technical standards for the calculation of risk-weighted exposure amounts of collective investment undertakings or CIUs, in line with the Capital Requirements Regulation (CRR).
APRA Expects Boards to Strengthen Ability to Oversee Cyber Resilience
The Australian Prudential Regulation Authority (APRA) recently completed two pilot initiatives in its 2020-2024 Cyber Security Strategy, which was published in November 2020.
