Mortgages - agreement in trialogue:
- statement by Antolín SANCHEZ PRESEDO (S&D, ES), rapporteur
Première transmission: 23/04/2013
Brussels, Belgium - European Parliament
Fin de production: 23/04/2013
Property buyers would be better informed about the costs and consequences of taking on a mortgage, better protected from market swings while the contract lasts and better protected if they cannot repay the loan, under a provisional deal struck by Economic and Monetary Affairs Committee MEPs and EU member state representatives on Monday. To become law, this deal must be approved by Parliament as a whole and endorsed by the member states. To curb irresponsible lending, mortgage sellers should be authorised, registered and supervised by national authorities so that they meet strict professional requirements, without encroaching upon their right to do business in other EU member states in line with the EU freedoms of establishment and to provide services.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Exterior shot of the EP, Brussels
||SOUNDBITE (Spanish) Antolín SANCHEZ PRESEDO (S&D, ES), rapporteur on mortgages regulation: "I think this is a very important agreement, because it increases the level of protection for consumers and it tries to stop the social exclusion on the mortgages market. It makes sure that the contracts are being made in a more responsible way and that there will be an evaluation of the risks for all the counterparts, with knowledge and information, with a correct valuation of the good. It also tries to find balanced formulas so if problems occur during a mortgage contract, which takes several years, they can be solved with fairness and equilibrium. At the same time, we push forward a series of reforms in the mortgages market of the EU, with very clear and balanced principles that I think they will have a positive effect, so they will prevent the problems that brought us into this crisis from happening again. We try to restart the mortgages market in Europe, as many EU countries still have great market opportunities in this area. This will certainly be good for labour market in Europe".
||SOUNDBITE (Spanish) Antolín SANCHEZ PRESEDO (S&D, ES), rapporteur on mortgages regulation: "When a problem arises in a mortgage contract, the first reaction cannot be the foreclosure of the contract, there is a need to explore other possibilities to fulfil the contract. Some mortgages have been respected almost during the entire period of the contract and a punctual problem during a period of time cannot be the cause for ending the contract. We have to find other solutions. And if the foreclosure procedure is taking place, the procedure must be a fair one, with an adequate evaluation of the property; so the member states have to increase their efforts in seeking a fair evaluation of the property. Also, the member states won't be able to object the return of collateral if the parts have come to an agreement on it. Finally, if after the foreclosure there is still a debt pending, the member states have to find measures to facilitate the payment, measures that need to take into consideration the basic needs of the consumers, and also that the consumer won't go into further and long term debt, as this is not interesting for the banks nor for the consumers or for the economy in general. So it is important to start a process of reforms of the mortgages market, and this directive wants to stimulate this reform in all EU member states, that have 2 years to implement this legislation".
||SOUNDBITE (Spanish) Antolín SANCHEZ PRESEDO (S&D, ES), rapporteur on mortgages regulation: "The Parliament considers that a regulation on mortgages must take into consideration a fair evaluation of the property; so it is important that evaluators are independent professionals. By this, the Parliament is in line with the highest international standards, which are the recommendations of the Financial Stability Board. We think it's vital that in a mortgage the evaluations will be reasonable and that the consumer and the bank will have this information beforehand in order to establish the conditions of the mortgage".
||SOUNDBITE (Spanish) Antolín SANCHEZ PRESEDO (S&D, ES), rapporteur on mortgages regulation: (on consumer protection) "There are three important aspects. The first is the financial education, being reflected for the first time in a European directive thanks to a proposal made by the EP. The second aspect is information: when a consumer enters the bank, he has to be well informed so we have established a common EU Standard Sheet, so everyone making a mortgage contract will have all the relevant information so they can take an informed and conscious decision. There will be a 7 day period of reflection, when the consumer can evaluate the offer, this 7 days period is recommended to all member states as a minimum period for reflection or withdrawal. Besides this, there will be a good regulation on personal advising, which cannot be a commercial advise, but has to be done for the benefit of the consumer."
||Cutaways shots (5 shots)