CML calls for an integrated European mortgage market that offers the same products at the same prices in different European countries. Outlining their expectations on the forthcoming Commission White Paper, CML fears that the Commission may be swayed by arguments for European regulation of the relationship between lenders and borrowers. Legislative measures on pre-contractual information, early repayment and the presentation of interest rates, for example, are likely to deliver the smallest benefits at the greatest cost, CML argues.
The most appropriate measures would focus on Integrating mortgage funding, liberalising national product markets, improving cross-border access to client databases and making land registration more effective and transparent. Therefore, the Commission should keep in mind the view of the mortgage funding expert group which argued that “a market-based, deregulated approach is best able to provide efficient markets, deliver maximum choice and best pricing for the consumer.”
CML therefore urges the Commission not seek to implement any measures before it has completed its own study of the role of intermediaries in European mortgage markets. And there should be a rigorous cost-benefit analysis of any measures before they are implemented.
© Graham Bishop
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