||Spanish mortgage borrowers celebrate landmark victory over 101 banks required to pay back fees to potentially 4 million mortages
Better Finance’s Spanish member organization ADICAE is celebrating the victory in the biggest class action ever in Spain, on behalf of 15.000 mortgage borrowers against 101 banks, as a Madrid commercial court considered that the fixed minimum rate mortgages in question lacked in transparency and declared them null and void, potentially applying the decision to 4 million... [more...]
||News from our partner NCRC about the War on Poverty in financial services in the USA
Our partner in the USA the National Community Reinvestment Coalition with whom we intentionally share the abbreviation CRC (Coalition for Responsible Credit) defends the rights of especially poor people in the USA to have fair, responsible and equal access to financial services. It was once born out of misuse banks provided when redlining whole areas of cities in which... [more...]
||IRELAND: ECRC partner FLAC is given an award for its work, held an information session on personal debt last month, and comments on limitations of the new law for insolvency...
Revising the code of conduct for banks on mortgage arrears: Central Bank Publishes Revised Code of Conduct on Mortgage Arrears http://www.centralbank.ie/press-area/press-releases/Pages/CentralBankPublishesRevisedCodeofConductonMortgageArrears.aspx Past FLAC comment: The Central Bank is in the process of revising its current Code of Conduct on Mortgage Arrears - a very... [more...]
||RESPONSIBLE MORTGAGES: EBA publishes good practices for responsible mortgage lending and treatment of borrowers in payment difficulties
The European Banking Authority (EBA) publishes today two Opinions on good practices for (i) responsible mortgage lending and (ii) for the treatment of borrowers in mortgage payment difficulties. Both Opinions are addressed to competent authorities and aim at promoting common practices, with the ultimate view of enhancing consumer protection and contributing to the... [more...]
||New UK consultation on responsible lending requirements in the mortgage market after bank pressure
The UK partner CfRC reports the following from its newsletter bulletin to subscribers of the service. FSA edges backwards on responsible lending requirements in the mortgage market The Financial Services Authority (FSA) has published a new set of proposed responsible lending requirements for consultation as part of its Mortgage Market Review, following considerable... [more...]
||Mortgage arrears in Ireland: Official report and Consumer perspective: "Personal and Mortgage Debt: 9 key principles"
Link to full Report on this article: Keane Report on Mortgage Arrears published. http://www.politics.ie/forum/economy/172769-keane-report-mortgage-arrears-published.html The Keane (Department of Finance) Group comprised civil servants and bankers without any consumer representation. Alternative to Keane Report which represents consumers (and includes the views of ECRC... [more...]
||EU Mortgage Directive - High Efforts to disguise that the Implementation of the Draft Consumer Credit Directive from 2002 would have solved the regulatory problems best.
The EU has delivered its draft for a mortgage regulation which has been successfully prevented for 20 years by effective lobbying. The mortgage industry is still the part of finance with little to no harmonisation in the EU. All attempts failed to harmonise the securities, to give access to foreign suppliers, to use online facilities for cross-border banking and to stop... [more...]
||Mortgage Directive - Parliament will try and improve the draft Directive proposed by the European Commission
European Parliamentary Committee calls for greater consumer protection measures in the proposed Mortgage Directive The Economic and Monetary Affairs Committee of the European Parliament has called for greater consumer protection measures to be built into the proposed Mortgage Directive, which was published... [more...]
||Australia: Mortgage exit-fees banned in banking reform
Australia: Mortgage exit-fees banned in banking reform win by CHOICE 22 Jun 2011 Australian consumer watchdog, CHOICE, has welcomed the Australian Federal Parliament's decision to uphold the ban on mortgage exit fees, which will now come into effect from 1 July, 2011. The ban was put to a vote in the Senate today, which threatened to see the key consumer banking reform... [more...]
||EU Mortgage credit regulation – A Report assessing the costs and benefits of various policy options for EU mortgages and containing consumer research has finally been published.
Consumer research that featured in the Commission’s report that helped inform its own impact assessment of mortgage credit markets and its proposal for a Mortgage credit Directive, is available on DG Internal Market’s website: http://ec.europa.eu/internal_market/finservices-retail/credit/mortgage_en.htm The Study on the costs and benefits of the different policy options... [more...]
||US Reform of Housing Finance: The Administration's Proposal for GSE Reform
The subprime crisis, the problems with securitisation and the financial situation of the Government Sponsored Entities has led the Obama Administration to release a report entitled "Reforming America's Housing Finance Market” which outlines a need for an orderly and deliberate transition plan for Fannie Mae and Freddie Mac and a plan for a new secondary market structure.... [more...]
||Early Repayment Fees, unconscionability & unfair contract terms – Australian regulator releases guidance for mortgage lenders
Early Repayment Fees (also known as prepayment penalties in the US or early termination fees or exit fees in Australia) will be assessable for unfairness in Australia, meaning that even a term that complies with consumer credit law may still be judged as unfair. ASIC sets out expectations of lender practices on mortgage early termination fees, 10-234MR, 10 November 2010... [more...]
||Usury legislation and empirical research - The Crown Witness for the worldwide Campaign of the former UK Labour Government, Policis, releases an open lobbying report for the UK mortgage...
Through their mortgage report, the consultants at Policis have once again shown that the research they produce is aimed at assisting the finance industry in defending its own interests. It brings us back to the beginning of this decade when a similar industry-friendly study they did was presented as solid empirical research. In its campaign against usury ceilings in the UK... [more...]
||EU Mortgage credit regulation and responsible lending - ECRC comment
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... [more...]
||Reverse Mortgages – Guidance to financial providers released by the FFIEC in the US.
August 16, 2010 Joint Agency Release Federal Financial Institutions Examination Council Financial Regulators Adopt Guidance on Reverse Mortgage Products The Federal Financial Institutions Examination Council (FFIEC) released final guidance today on reverse mortgage products. The guidance, adopted by each of the financial regulators, emphasizes the consumer protection... [more...]
||Ireland - Review of Code of Conduct on Mortgage Arrears and previous Report on arrears
17.08.10 Review of Code of Conduct on Mortgage Arrears www.financialregulator.ie/consultation-papers/Documents/CP46%20Review%20of%20Code%20of%20Conduct%20on%20Mortgage%20Arrears/CP46%20Review%20of%20Code%20of%20Conduct%20on%20Mortgage%20Arrears.pdf 09.07.10 Irish Expert Group on Mortgage Arrears and Personal Debt publishes report... [more...]
||MORTGAGE ARREARS - Shelter report on managing mortgage arrears and possessions in the UK
Centre for Housing Policy The impact and management of mortgage arrears The recent rapid loss of liquidity in the mortgage market (the credit crunch), the rapid fall in house prices, and the fall in housing market transactions, all have profound implications for both the extent of mortgage arrears and possessions and for their management by lenders and borrowers. Project... [more...]
||Reverse Mortgages - US regulator produces a 3 page guide
FOR IMMEDIATE RELEASE September 25, 2009 Contact: Dean DeBuck (202) 874-5770 OCC Releases Consumer Advisory: “Reverse Mortgages: Are They for You?” WASHINGTON — The Office of the Comptroller of the Currency (OCC) today issued a consumer... [more...]
||Mortgages in the Netherlands - The Financial Markets Authority has developed new proposals for the provision of mortgage credit.
http://consument.afm.nl/consumenten/actueel/nieuws/2009/consultatie.aspx Consultation on new proposals for consumer protection in mortgages The AFM has developed new proposals for the provision of mortgage credit. The AFM considers these necessary to protect consumers against excessive payment risks when financing their homes. Under the proposal, the current income norm... [more...]
||REVERSE MORTGAGES - The US authorities have linked the sale of these Equity Release schemes to the sale of subprime loans. Iff wrote a report for the European Commission where it...
FEDS PULL REVERSE MORTGAGE ALARM BLOOMBERG NEWS Posted: 06/08/2009 02:52:47 PM PDT Comptroller of the Currency John Dugan said a type of mortgage sold to older homeowners may pose the same risk as subprime loans, and that his agency was slow to act as rising foreclosures led the market to collapse. "We all could have sounded the alarm earlier about risks that were... [more...]
||MORTGAGE CRISIS – Report on the UK says Banks Must Restructure Mortgages to stop repossessions
The following Press release and report have been published by ECRC partner Inclusion, main organizers of this year’s international responsible credit conference in London. The paper “Responding to the Mortgage Crisis - A Review of Recent Policy Announcements” written by Damon Gibbons and attached below is one of a short series of policy reviews provided to support... [more...]
||HOUSING LOANS AND ADVICE IN FRANCE – The supply-side is yet to make propositions for a responsible credit environment, until they do, consumers can fortunately benefit from documents...
CONSEIL AUX ACCEDANTS : NOUVEAU CONTEXTE, DOCTRINE RENOUVELEE L’attrait pour l’accession à la propriété ne se dément pas. Les ménages sont parfois freinés dans la réalisation de leur projet par les contraintes économiques, mais les ADIL observent que leur réaction majoritaire est plutôt d’accepter des taux d’effort de plus en plus élevés sur de plus longues durées. Malgré... [more...]
||Predatory Lending in the US and European Welfare Recipients: US Federal Reserve Board: Predatory Lending is a major Cause for the Subprime Crisis or Why German Welfare Recipients...
GERMAN WELFARE RECIPIENTS AND US SUPRIME CRISIS American subprime lenders sold their high interest portfolios of mortage loans to investors all over the world who like the Saxon German Public Bank (SachsenLB) even borrowed about 20 billion € from other banks to buy these papers with a high yield so that they could pretend profitability. The fantastic dream of country side... [more...]
||EU MORTGAGE CREDIT - BEUC reports and gives its initial comments on the EU’s white paper on mortgage credit. We call on ECRC members to share their views on this White Paper and on any...
BEUC summary: On the 18th December, the European Commission published the White paper on mortgage credit. In our view, the result is disappointing. As far as a Mortgage directive is concerned, the white paper concludes that yet another impact assessment is needed because implementation cost might be significant. At the same time, the executive summary confirms that APRC... [more...]
||EU Commission on the Reasons of the Subprime Crisis: Irresponsible Borrowing and Intransparent MBS Markets
In its FinFocus Infoletter No 4 2007 addressed especially to a broad audience and issued on December 2007 the European Commission gives its view of the subprime mortgage crisis. FIN-FOCUS Newsletter "US sub-prime mortgage crisis – does it affect Europe? How did the crisis start? The sub-prime mortgage financial crisis began in the United States in 2006. Loans were... [more...]
||EU HOUSING LOANS – The European Commission announced today its long-awaited proposals on mortgage credit. Is it the final warning for EU mortgages to integrate their markets on a...
EU Internal market may threaten member states with legislation, if no non-regulatory solutions are put forward. We welcome ECRC members and partners to post their views and suggestions on this White paper, so that solutions can be discussed before more formal measures are imposed on the Member States. The Commission’s white paper highlights specific areas for attention... [more...]
||HOUSING FINANCE - EU Parliament wants a Free EU Market for Mortgage Industry. No integration into Consumer Credit Directive. No Consumer Protection
In a motion on mortgage credit in response to the Commission's Green Paper on Mortgage Regulation the European Parliament has issued its paper which if implemented will significantly weaken national consumer protection in housing and affect the social protection provided by national markets. Exorbitant early repayment fees in some countries, a devastating second mortgage... [more...]
||EUROPEAN MORTGAGE REGULATION: a Lobby Affair?
12 EBIC members co-opt three consumer representatives to define future mortgage regulation with DG Market. Final Report announced for December 2006. FAILED SELFREGULATION PRESENTED AS A SUCCESS After a promising draft to regulate mortgage loans on an EU level in the eighties industry and Commission replaced this draft by a recommendation in which the industry signed a... [more...]
||NEW MORTGAGE PRODUCTS – Innovative offers reducing debtor vulnerability are creative, but can consumers, who are generally seen as having limited financial knowhow, really be expected...
COLLATERAL THINKING (Sep 21st 2006 from The Economist ) AS PROPERTY VALUES RISE, LENDERS LINK LOANS TO HOUSE PRICES FOR most homeowners, their house is their biggest single financial asset and their mortgage is their biggest single liability. House-price inflation has normally made this a good bet. But it makes little sense in financial theory for investors to borrow a... [more...]
||Housing without Money - The WORLD URBAN FORUM III AN INTERNATIONAL UN-HABITAT EVENT ON URBAN SUSTAINABILITY Vancouver, Canada June 19-23, 2006 ignores the financial basis of urban...
Only two sessions stress financial issues but with no participation from the private banking sector neither in sponsoring nor in contents. Seen the great importance the Community Reinvestement and Responsible Credit movement gives to fair finance in housing and access to affordable mortgage credit it is a pity that the UN still things that with Microlending and the World... [more...]
||COMMUNITY LENDING - For South African banks, "Low-cost housing a joint challenge" - but where's civil society, the third leg of the stool?
Note: The article below, concerning social housing and banks in South Africa, is written by the director of France's international development agency, and should be viewed in that light. Still it portrays a situation on the brink of instituting infrastructure for community reinvestment. The author says that "South African banks, through the intermediary of the Banking... [more...]
||Workshop 2: "Housing Matters: Mortgage Lending in an Era of Unprecedented Prices, Lending and Risk" Workshop outline by Achim Tiffe
This workshop on the theme of housing finance will explore the current state of the mortgage market and highlight the risks and vulnerabilities of the sector. With home ownership rates in most of Europe at historically high levels, and with that ownership having been largely financed by home loans, many mortgage borrowers are in a vulnerable position. Preserving the home... [more...]
||Workshop 2: "Housing Matters: Mortgage Lending in an Era of Unprecedented Prices, Lending and Risk" presentation by Gail Burks
ISSUES Market Factors Populations Impacted Mortgage Risk Trends New Paradigm MARKET FACTORS Profit Centers Growth (global) Inconsistent / Non-existent Laws Lack of Enforcement – Domestic Laws IMPACT Low Wealth Communities Government Economy (broad cost to all) TRENDS Earlier Delinquency Inability to Pay Increased Scams Maturing interest only loans Inflated income... [more...]
||Workshop 2: "Housing Matters: Mortgage Lending in an Era of Unprecedented Prices, Lending and Risk" paper by Manfred Westphal
Although most EU mortgage markets have been expanding rapidly in recent years these markets remain very diverse; these differences in mortgage and housing markets reflect Member States’ attitude to regulation, economic history and cultural factors. The markets are not very integrated, notably in relation to the range of available products and cross-border mortgage... [more...]
||Workshop 2: "Housing Matters: Mortgage Lending in an Era of Unprecedented Prices, Lending and Risk" paper by Bernard Vorms (in french)
Are high prices and a high level of indebtedness really putting "unprecedented risks" on the shoulders of housholds? (Please read the paper by Bernard Vorms attached in french) [more...]
||Workshop 2: "Housing Matters: Mortgage Lending in an Era of Unprecedented Prices, Lending and Risk" Abstract contributed by Achim Tiffe
ISSUE I: WHAT KIND OF REGULATION DO WE NEED FOR AN EFFICIENT MORTGAGE MARKET FOR CONSUMERS IN EUROPE? The current proposal for a consumer credit directive does not cover any kind of home loans in opposition to the first draft from 2002: Otherwise the European Commission has the plan to create a framework for home loans in the European Union and speaks about new... [more...]
||US Banks Tweak National Credit Union Administration After It Tweaks Expansion Proposal American Banker Friday, April 7, 2006 By Luke Mullins
On its surface, a credit union expansion rule proposed by the National Credit Union Administration would appear to be good news for banks. The proposal, which would prohibit community-chartered credit unions from expanding into underserved areas, was issued in January - in large part as a response to complaints from bankers that community credit unions were using an... [more...]
||US Option Adjustable Rate Mortgages: Disclosures and Balances Are Both Up American Banker Wednesday, April 5, 2006 By Jody Shenn
For home lenders, 2005 may go down as the year that disclosure of details on option ARMs began to achieve critical mass. Information on activity in the niche had long been elusive; among the biggest participants, Downey Financial Corp. was notable for the amount of information it had provided in past years. But a survey of top option-ARM lenders' 10-K filings by... [more...]
||Originating Relationships; Mortgage bankers are mining and analyzing data to get a bigger bang for their relationship buck.
Obtaining a mortgage often is a once-in-a-lifetime event for consumers that provides lenders an opportunity to secure customers for years to come. Yet, this steady relationship can be a double-edged sword. Since mortgages are not transaction-heavy products, mortgage bankers sometimes are unable to create the same dynamic relationships with customers as with other lines of... [more...]
||NCRC Accuses Five Lenders of Redlining
In Brief: Group Accuses Five Lenders of Redlining American Banker - Tuesday, March 21, 2006 By Jody Shenn The National Community Reinvestment Coalition filed complaints with the Department of Housing and Urban Development accusing five more mortgage lenders of redlining. The complaints, which the Washington group announced last week, were filed... [more...]
||High Home Values Boost Net Worth Of U.S. Households
By RAFAEL GERENA-MORALES and JAMES R. HAGERTY March 10, 2006; Page A2 The rising value of U.S. homes boosted the net worth of American households to a record in the fourth quarter, but higher interest rates could slow home-price appreciation in the months ahead. Meanwhile, new claims for unemployment insurance rose slightly in the week ended March 4. U.S. households'... [more...]
||Lenders Pull Out of Mortgage Markets in Maryland, USA if a court does not bar an anti-predatory ordinance from going into effect
American Banker Tuesday, March 7, 2006 By Erick Bergquist More lenders may leave or pull back from the Montgomery County, Md., mortgage market if a court does not bar an anti-predator ordinance from going into effect there Wednesday, a Mortgage Bankers Association official said. Over three dozen lenders or securitizers have told the Maryland Association of... [more...]