A series of problems have been identified in mortgage markets within the Union relating to irresponsible lending and borrowing and the potential scope for irresponsible behaviour by market participants including credit intermediaries and non-credit institutions.
Some problems concerned credits denominated in a foreign currency which consumers had taken out in that currency in order to take advantage of the borrowing rate offered but without having adequate information about or understanding of the exchange rate risk involved. Those problems are driven by market and regulatory failures as well as other factors such as low levels of financial literacy. The problems identified have potentially significant macroeconomic spill-over effects, can lead to consumer detriment, act as economic or legal barriers to cross-border activity and create an unlevel playing field between actors.
In view of these problems, the European legislator considered appropriate to establish a new regulatory framework in this area. As a result, the Directive 2014/17/EU was adopted, which has been implemented in the Cypriot law.
The programme will:
- Present the mortgage credit regulatory framework
- Provide a comparison between the existing and the new requirements concerning the mortgage credit
- Provide guidance concerning the new requirements for the credit institutions in order to comply with the new legislation (pre-contractual information, contracts, policies)
- Present the relevant guidelines of EBA
- Present case law
- Scope of application
- Information to be provided to the consumer
- Adequate explanations
- Advertising and marketing requirements
- Rights of the consumer (right of withdrawal, right of early repayment)
- Creditworthiness assessment
- Advisory services
- Foreign currency loans
- Compliance requirements
The programme is designed to deliver knowledge and enhance participants’ skills via case-studies and practical examples, and participants will benefit from customised feedback at the end of the programme and take away knowhow that can be transferred at their workplace.
The course shall include the presentation and analysis of the regulatory framework providing practical examples.
Who Should Attend
The programme will benefit those who need to know and understand the Mortgage Credit Regulatory framework and will be of particular benefit to:
- Legal Advisers
- Compliance Officers
- Banks’ Officers