This comes ahead of the publication of the Mortgage Credit White Paper in June.
The Groups focused on the issues of pan-European mortgage funding and consumer protection and were brought together by the European Commission to examine the case for further integration.
The Mortgage Funding Expert Group (MFEG) was set up to identify, classify and prioritise barriers to integration for funding models, and consider and justify possible solutions. The Mortgage Industry and Consumer Dialogue group was tasked with exploring the following issues: information, advice, early repayment and APRs. This included examining whether the voluntary code in Europe was still relevant, and considering at what point the European Standardised Information Sheet (ESIS) should be given out to the customer. It also considered what is meant by ‘advice’, who should provide it, and to what standards.
Vanessa Moore, policy adviser at AFB, commented: “The Commission’s White Paper on Mortgage Credit is due in June this year. This paper will bring forward proposals for future action by the Commission to help further integrate mortgage markets across Europe. The way in which the European Commission divides mortgages and consumer credit means that secured loans remain outside of the Consumer Credit Directive, and are instead dealt with through the Mortgage Credit White Paper.
“The outcome of the White Paper could ultimately force the government to bring the regulation of secured loans out of OFT’s remit and into the FSA’s regime. This is an important issue for secured loan intermediaries and AFB has provided its members with a strong voice at a European level.
“We question whether regulation at a European level will succeed in creating a fully integrated mortgage credit market across the EU. AFB’s response to the MFEG and Consumer Dialogue reports supports the view of the Association of Mortgage Intermediaries (AMI) that any European-wide intervention by the Commission should only take place where it has clearly been demonstrated that the market is unable to deliver change through a non-legislative, industry-led process. AFB also firmly believes that any specific proposals must be made alongside a full cost-benefit analysis.”
