EU focuses on quality, not quantity
European Union is developing common rules for mortgage lending aimed at issuing loans only to customers that can actually repay them. This was discussed during the talks between representatives of EU nations.
In particular, the EU proposes to prohibit banks and lending institutions to reward or penalize their employees for the number of concluded mortgage contracts. Besides, banks will be obliged to check the creditworthiness of prospective clients.
Moreover, the EU insists on increasing consumer protection by making it harder for lenders to seize homes from borrowers who fail to keep up with repayments.
The new rules are set to enter into force in mid-2015.
