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 Publishes Regulations Supplementing Investment Firms Directive
The European Commission (EC) published three Delegated Regulations (2021/2153, 2021/2154, and 2021/2155) to supplement the Investment Firms Directive (IFD or Directive 2019/2034).
FSB Report Examines Trends in Non-Bank Intermediation in Americas
The Financial Stability Board (FSB) published a report that presents results of the sixth non-bank financial intermediation monitoring exercise in the Americas.
BIS Discusses Regulatory Approach for Non-Bank Intermediation
The Bank for International Settlements (BIS) published the December issue of the Quarterly Review, which analyzes the non-bank financial intermediation mechanisms that could undermine financial stability.
BoE Calls for Vendor Input for Data Collection Transformation Program
The Bank of England (BoE) opened the Alternative Liquidity Facility, or ALF, for deposits from the participating UK-based Islamic banks for the first time.
APRA Sets LAC for D-SIBs, Proposes to Enhance Crisis Preparedness
APRA issued a letter on the loss-absorbing capacity (LAC) requirements for domestic systemically important banks (D-SIBs) and published a discussion paper, along with the proposed the prudential standards on financial contingency planning (CPS 190) and resolution planning (CPS 900).
EBA Proposes Standards on Interest Rate Risk in the Banking Book
The European Banking Authority (EBA) launched three consultations on technical aspects of the revised framework capturing interest rate risks for banking book (IRRBB) positions, with the comment period ending on April 04, 2022.
EC to Review Macro-Prudential Rules while ESRB Assesses Policy Stance
The European Commission (EC) launched a call for evidence, until March 18, 2022, as part of a comprehensive review of the macro-prudential rules for the banking sector under the Capital Requirements Regulation (CRR) and Directive (CRD IV).
EBA Sets Out List of Banks for Mandatory Basel III Monitoring Exercise
The European Banking Authority (EBA) published the sample of banks for the mandatory Basel III monitoring exercise, which will refer to the December 2021 data.
FED Revises Complex Institution Liquidity Monitoring Report for Banks
The Board of Governors of the Federal Reserve System (FED) is adopting a proposal to revise and extend for three years the Complex Institution Liquidity Monitoring Report (FR 2052a) for banks.
FSB Sets Out Good Practices for Crisis Management Groups
The Financial Stability Board (FSB) published a report that sets out good practices for crisis management groups.
