Brussels, 21/12/2007 (Agence Europe) - Several organisations representing industry and the law have reacted in response to the publication at the beginning of this week of the White Paper on integration of the European mortgage credit market (see EUROPE 9567). Welcoming the Commission's wish to launch cost/profit studies before taking a political decision in this field, they comment on the position whereby increased integration of the market would lead to a greater diversity of credits available, and lower prices. According to the European Mortgage Federation (EMF), emphasis should be placed more on slowing down “product innovation rather than on the diversity of financial products”. It goes on to welcome the recommendation that the Commission will present in 2008 on property registers, real estate repossession procedures and the evaluation of goods, as well as studies to be carried out on the obstacles that limit access to national credit databases.
The European Savings Bank Group (ESBG) does not fully share the Commission's position whereby substantial advantages can be expected from an increase in product diversity. We can ask ourselves whether this diversity is indeed too low, it says. The organisation also evokes arguments in favour of increased product diversity as set out in the controversial studies such as the London Economics study. Published by the Commission in 2005, the study considers that increased product diversity would have a favourable economic impact but it was criticised by the industry itself (see EUROPE 9008 and 9060). Agreeing with the Commission on the fact that a Community instrument is not needed to stimulate European mortgage credit market integration, the Council of the Notariats of the European Union (CNUE) hopes to draw attention to the fundamental role of consumer protection. It considers the American crisis shows that consumer protection is not guaranteed simply by a large number of withdrawal rights and written information that is hard for consumers to manage. It goes on to say that it is doubtful that growing mortgage credit market integration will entail a reduction in costs and greater demand. (M.B.)