The ECRC has today sent the Commission its views on its preliminary proposals to regulate mortgage markets in the EU.
On September 13th, the ECRC was invited by the European Commission to attend a meeting with DG Markt on 13.9. to discuss and collect feedback on their responsible lending proposals. Attended by a number of ECRC partners and consumer representatives, the meeting was one of several separate stakeholder meetings which the Commission’s services have organised. Achim Tiffe from iff attended the meeting on ECRC’s behalf and conveyed the ECRC concerns to them at the meeting.
The proposals contained in the Commission’s “working paper on responsible mortgage lending & borrowing” (22.7.2010) are wider than simply responsible lending issues as its name suggests and is the result of their analysis on the costs and benefits of mortgage policy options (an impact assessment study which will not be published before concrete proposals have been drafted). New rules are being debated in all four areas of mortgage credit: precontractual information, APR, early repayment and responsible lending, and as such, the meeting and paper has a wider scope than the meeting that the European Commission held in September 2009 on “responsible lending and borrowing”.
The meetings were part of a process which is to lead to a proposal for a mortgage directive planned for February 2011. We thank all our ECRC partners that have helped to substantiate the views of the Commission along the lines of our ECRC comment which we have sent to the Commission today.
Also, note that our UK partners are also responding to a UK consultation on the FSA mortgage market review: www.fsa.gov.uk/pages/Library/Policy/CP/2010/10_16.shtml