Mortgage credit reform: Time to serve the real economy

01 September 2011

Spanish Socialist, Antolín Sánchez Presedo, looks at how better to protect borrowers and put Europe's credit industry on a more solid foundation.

Mr Presedo suggested:

• the regulation of mortgage markets;
• borrowing practices should not harm savers and taxpayers;
• increasing financial education of borrowers (what to know before/after signing mortgage contract);
• facilitating the traceability of each mortgage;
• identifying risky products - those also bear the potential costs of taking such risks;
• regarding diversity of mortgage markets but removing barriers to internal markets;
• more flexible contracts and payments (allowing the early repayment of a loan, possibility of switching lenders, possibility of converting foreign currency loans into domestic currency loan,...)

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