Mortgage Credits Directive – MCD

Objectives

The requirements introduced by the implementation of the Mortgage Credit Directive into Luxembourg Law.

• Harmonisation of common standards
• Protection of consumers across the EU

The objectives of this training session are to:

• Provision of clear and detailed information on loan conditions – comparability
• Assessing creditworthiness on the basis of common EU standards
• Common quality standards and business conduct principles for all EU lenders
• Right to early repayment of loans
• EU passport for credit intermediaries
• Generalisation of ESIS

Content

Introduction – context of the MCD legislation

Scope of application and Supervisory framework

•  Impacted products
• Exclusions from the MCD rules
• Practical examples
• Professional obligations
• Competence of the CSSF

General rules of conduct

• Manufacturing or distributing/granting MCD products
•  Main principles
• Knowledge and competence requirements

Advertising and pre-contractual information

• Advertising practices
• General information (FISE) and explanations to be provided to prospects
• Provision of advice
• Offer and reflection period

Assessment of the consumer’s creditworthiness

•  Information to be gathered and verifications

Loan to Value limits

• General rules and limits applicable
• Flexibility for loans to finance principal residence goods

Other consumer protection measures

• Information to be provided during the life of the credit
• Early repayments
• Loan in foreign currency

Question and answer session

Target Group

Compliance Officers, Legal Counsels, front and back office staff dealing with mortgage credits

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For more information please contact us by e-mail institute@arendt.com