MCD - EBA final guidelines


MCD - EBA final guidelines and opinion on mortgage creditworthiness assessments and arrears and foreclosure

June 2015

On 1st June 2015, the EBA published its final Guidelines on creditworthiness assessment and on arrears and foreclosure. Both Guidelines sustain the national implementation by EU Member States of the upcoming Mortgage Credit Directive (MCD).

The Guidelines on creditworthiness assessment draw up requirements for:

  • checking consumers' income
  • documenting and retaining information
  • identifying and preventing misrepresented information
  • assessing consumers' ability to meet their obligations under the credit agreement.

The Guidelines on arrears and foreclosure set up requirements in terms of:

  • policies and procedures for the early detection and handling of payment difficulties including staff training
  • engagement with consumers, provision of information and assistance to consumers
  • resolution process and documentation of dealings with consumers and retention of records.

The Guidelines will apply from 21 March 2016, the transposition date of the MCD.

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