At an ECOFIN meeting (Economic and Financial Affairs) on 28 January 2014, the Council formally adopted the directive on credit agreements relating to residential property. This adoption follows the approval given by the European Parliament during its plenary session on 10 December 2013.
The text adopted by the Council of the EU integrates all the amendments voted for by the European Parliament, following the agreement at first reading between the two institutions. The directive is available at the following address: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P7-TA-2013-0541
Although the notarial profession is only slightly affected by the directive, the Notaries of Europe consider that it is a step towards creating a European mortgage market and better consumer protection following the financial crisis.
The text sets out principles for marketing and advertising, and obligations for pre-contractual information, as well as requirements for information concerning credit intermediaries and for information on the borrowing rate. Provisions require the creditor to assess the creditworthiness of the consumer, as well as disclosure obligations on the part of the consumer. Finally, the text establishes regulatory and supervisory principles with regard to credit intermediaries, as well as provisions to enable adequate regulation and supervision of non-credit institutions.