On 12 December 2014, the European Banking Authority (EBA) published a consultation paper on draft guidelines on the treatment of mortgage borrowers in arrears under the Mortgage Credit Directive (MCD). The guidelines provide greater detail on how financial institutions should give effect to Article 28 (encouraging creditors to exercise reasonable forbearance).

The guidelines establish requirements on: policies and procedures; engagement with the consumer; provision of information and assistance to the consumer; resolution process; and documentation of dealings with the consumer and retention of records.

The guidelines are based on the provisions of the Opinion of the European Banking Authority on Good Practices for the Treatment of Borrowers in Mortgage Payment Difficulties, which was published on 13 June 2013 (before the MCD was adopted) and which was reviewed by the EBA when developing the guidelines.

The deadline for responses to the consultation is 12 February 2015.