The European Federation of Building Societies (EFBS) issued its response on the Commissions Green Paper on Mortgage Credit. According to the EFBS, the Green Paper does not provide solutions to the main obstacles for a European market for housing finance. Next to the lacking obligation for recognising the financial techniques of other Member States, these can still impede the import of financial services by taking advantage of the general good clause. The insufficient development of a European market for mortgage credit is not due to the different levels of consumer protection as customers will likely turn to a supplier from their local environment. Thus a European harmonisation of consumer protection rules will not lead to a European market.
The EFBS advocates for the maintenance of the Code of Conduct on Home Loans signed by consumer protection associations and the European credit industry alike. Via this instrument comprehensive and standardised information of the consumer has been implemented more quickly on European level then by long-lasting legislative procedures.
EFBS also states that the Commission’s intention to limit the right for early repayment of a long term
loan with fixed interest rates as well as the early repayment fee would eliminate loans with fixed interest rates.
Press release
© EFBS
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