The new EU Directive on Mortgage Credit has been published in final form in the Official Journal of the EU, and will apply an enhanced regulatory framework to mortgage credit agreements existing on or after 21 March 2016, subject to transitional provisions. The introduction of a harmonised, EU-wide mortgage regulatory regime comes hot on the heels of the finalisation of the UK Financial Conduct Authority's Mortgage Market Review (MMR) Final Rules which establish detailed conduct of business and enhanced prudential requirements for UK mortgage lenders, including non-bank lenders who have been brought into the regulatory regime for the first time. With the MMR Final Rules having taken effect on 26 April 2014, the new UK regime is expected to already be largely compliant with the provisions of the Directive (and will likely evolve and develop during the period until the Directive requires implementation), but it is likely that a detailed review of the MMR Final Rules will be undertaken to assess whether specific changes will be required to fully implement the Directive into UK law. Read our Feature Piece on the Directive in this Edition of the SCM Briefing.

Useful links

Directive 2014/17/EU