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
Previous Article
ECB Issues Multiple Updates, Reviews Climate Risk Practices of BanksRelated Articles
EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.
EC Mandates ESAs to Propose Amendments to SFDR Technical Standards
The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.
EBA Examines Supervisory Practices, Issues Deposits Reporting Template
The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),
US Agency Publications Address Basel, Reporting, and CECL Developments
The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances
SEC Extends Comment Period on Climate Risk Disclosures
The U.S. Securities and Exchange Commission (SEC) looks set to intensify focus on crypto-assets and cyber risk and extended the comment period on the proposed rules to enhance and standardize climate-related disclosures for investors.
APRA Reduces Committed Liquidity Facility, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility and issued an update on the operational preparedness for zero and negative market interest rates.
CMF Consults on Basel Rules, Presents Roadmap to Address Climate Risks
The Commission for the Financial Market (CMF) in Chile published capital adequacy ratios (as of February 2022, January 2022, and December 2021) for 17 banks and for the banking system.
PRA Issues Statement on NPEs and Policy on Trading Activity Wind-Down
The Prudential Regulation Authority (PRA) issued a statement on the European Banking Authority (EBA) guidelines on management of non-performing exposures (NPEs) and forborne exposures.
EBA Updates Standards for 2023 Benchmarking of Internal Approaches
The European Banking Authority (EBA) updated the implementing technical standards that specify the data collection for the 2023 supervisory benchmarking exercise in relation to the internal approaches used in market risk, credit risk, and IFRS 9 accounting.
EIOPA Responds to Stakeholder Views on Blockchain in Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published a feedback statement on the responses received to the consultation on blockchain and smart contracts in insurance.
