The creation of an internal market for mortgage loans: A never-ending story?

Abstract:

The present financial and sovereign debt crisis has underlined the important role of housing finance in the economy. This analysis summarizes previous and current attempts of the European Union to create a common legal framework for mortgage credit contracts.

Particular emphasis is given to the recent proposal for a directive on credit agreements relating to residential property. The author also outlines the approach of the United States and provides a short survey of legal proposals in Germany, United Kingdom, Sweden and Spain. The author argues that the credit agreements directive will not prevent a second mortgage crisis. However, it may lead to a higher level of consumer protection and consumer information.