The Council of
Mortgage Lenders, the organisation responsible for representing 98% of the UK’s residential
mortgage lending industry, held a hearing in Brussels today. The purpose was to discuss reactions from the European
mortgage industry on the topic of mortgage market integration.
The interest of the Council of Mortgage
Lenders is to facilitate the possibility of doing
business between different member states, beyond the measures being created to harmonise the
protection of consumers.
Currently,
Europe has a varied array of mortgage markets. In order for lenders to be able to operate in different member states, policy and systems of mortgage
borrowing must be made standard. This centres around several key issues: the amount of
credit data needed from borrowers, the systems of land registration in place, and the avenues available to take possession of a property. None of these are currently being given priority by the Commission, and early economic analysis indicates that the UK could lose out on an integrated market.
The Council of Mortgage Lenders called for the EU to concentrate on funding and market issues, as well as consumer factors. According to the CML, the importance in facilitating cooperation between members lies in the benefits that could be reaped by both lenders and consumers alike.
