On 31 March 2011 the EC has adopted a proposal for a Directive on credit agreements relating to residential property (COM(2011) 142) ("the proposed MCD"). The goal of the proposed MCD is to create a further integration of the internal market for mortgage credits. In this respect it is envisaged to introduce, amongst others, a license requirement for creditors and credit intermediaries at a European level.
Although the activities will be regulated at a European level no European passport will apply. The proposed MCD includes behavioral rules for creditors and credit intermediaries involved in mortgage credits, such as minimum competence requirements, advertising rules, (pre-contractual) information requirements, the creditworthiness test and the calculation of the annual percentage rate of charge. In the Netherlands there is currently such a regime on a national level which includes many of the abovementioned behavioral rules.
Developments On 10 December 2013 the EP has adopted amendments to the proposed MCD. The EP and the Council have tentatively reached an agreement on the final wording. On 17 January 2014 the Council has published the revised text of the proposed MCD. The Council has adopted the proposal on 28 January 2014. It is expected that the Mortgage Credit Directive will be published in the first quarter of 2014. The member states should have implemented the Mortgage Credit Directive within two years.