The forces of Europe are gathering against the laisser-faire attitude that led to so many toxic loans being dished out at the height of the credit bubble. Likely to publish a Directive shortly on the topic of “Responsible Lending and Borrowing” the EU is anxious to promoting a single market in mortgage lending and to disinfect a sector that had become afflicted by dubious practices. The medicine will likely include:
Minimum competence requirements for staff involved in selling loans; standardised information about the terms and effect of loans; transparency around mortgage brokers fees; an obligation to carry out a “robust” assessment of the Consumer’s ability to repay and to match the Consumer to the product. Finally, Borrowers themselves will be under a stricter obligation to provide “complete and correct information on their financial and personal circumstances”. Expect the medicine to provoke squeals of pain from Euro sceptics and the mortgage sector alike.
Compliance Officer for Legal Practice
Andrew oversees the Firm’s Quality Systems and is committed to making sure that our client’s receive the very best customer care and attention along with the best marketing and legal advice in the area.
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