Regulatory Alerts2024-01-10
Peer Review Report on Supervision of Treatment of Mortgage Borrowers in Arrears
The European Banking Authority conducted a peer review of seven competent authorities to assess the effectiveness of their supervision of creditors' treatment of mortgage borrowers in arrears under the Mortgage Credit Directive. The review found that while all authorities implemented EBA guidelines, those with dedicated conduct supervision resources were more effective in mitigating consumer detriment during rising interest rates. Consequently, the EBA issued follow-up measures requiring authorities with primarily prudential mandates to strengthen their conduct supervision resources and approaches to ensure consistent consumer protection across the EU.
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