European Institute of Management and Finance | Mortgage Credit: The New Regulatory Framework
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Mortgage Credit: The New Regulatory Framework

Mortgage Credit: The New Regulatory Framework


The financial crisis has shown that irresponsible behaviour by market participants can undermine the foundations of the financial system, leading to a lack of confidence among all parties, in particular consumers, and potentially severe social and economic consequences. Although some of the greatest problems in the financial crisis occurred outside the Union, consumers within the Union hold significant levels of debt, much of which is concentrated in credits related to residential immovable property. 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 the general economic climate and 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 recently implemented in the Cypriot law.



The objective of this seminar is:


  • to present the new regulatory framework,
  • to provide a comparison between the existing and the new requirements concerning the mortgage credit,
  • to provide guidance concerning the new requirements for the credit institutions in order to comply with the new legislation (pre-contractual information, contracts, policies)



Seminar content


  • Scope of application
  • Information to be provided to the consumer
  • Adequate explanations
  • Advertising and marketing requirements
  • APRC
  • Rights of the consumer (right of withdrawal, right of early repayment)
  • Creditworthiness assessment
  • Advisory services
  • Foreign currency loans
  • Compliance requirements



Who should attend


  • Legal advisors
  • Compliance officers
  • Banks’ officers