In its approach to credit, particularly mortgage credit, the European Commission has in the past, rightly, concentrated on finding ways to get rid of obstacles to the internal market. And we will continue to see this as the overriding driver for any action at EU level.
On mortgage credit, the Commission has spent many years looking at how the market works and identifying areas where EU action could potentially bring benefits. The White Paper on Mortgage Credit in 2007 set the scene for many of the developments we are talking about now. In some areas, such as information disclosure, work is at an advanced stage. Over the last year, we have been conducting comprehensive consumer testing of the European Standardised Information Sheet for Home Loans, or ESIS, and have been able to identify a clear way forward in improving the usefulness and relevance of the ESIS for borrowers. From this work, one of the key messages has been that the identification of potential risks is vitally important to borrowers.
In its approach to credit, particularly mortgage credit, the European Commission has in the past, rightly, concentrated on finding ways to get rid of obstacles to the internal market. And we will continue to see this as the overriding driver for any action at EU level. The financial crisis has shown so bluntly, that even if loans are granted to borrowers at a local or regional level, the funding of these loans by lenders may well have cross-border or global implications.
© European Commission
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