Brussels, 10/12/2013 (Agence Europe) - The risks linked to mortgages will be more closely regulated thanks to new European provisions adopted by the European Parliament on Tuesday 10 December (596 votes to 65, with 31 abstentions). MEPs ratified an agreement with the Council on a point that had been pending on the role of the European Banking Authority.
The legislation as a whole will ensure that customers purchasing property in Europe are duly informed about the risks linked to taking out a loan but they will also be better protected if mortgage repayments increase or they are unable to pay the loan back. The general rules in the directive had already been agreed during a previous vote in September (see EUROPE 10918) but MEPs wanted a guarantee from member states as to application of these rules, before adopting the entire resolution. By way of an agreement with the Council, it was established that the European Banking Authority will be able to address breaches of the provisions and call on the appropriate national authorities to rectify them. European Commissioner for the Internal Market Michel Barnier welcomed the definitive adoption of the directive and said that it would certainly restore consumer confidence in the financial sector. (MD/transl.fl)