Regulatory Alerts2017-06-26
Recommendation 2017-R-01 of 26 June 2017 on the free choice of borrower's insurance for mortgage loans
The Prudential Control and Resolution Authority (ACPR) issues this recommendation to establish best practices ensuring the fair and transparent exercise of borrowers' right to choose their own insurance for mortgage loans. It mandates that lenders provide clear information, process external insurance requests efficiently without imposing unnecessary barriers, and strictly adhere to equivalence criteria defined by the Financial Sector Consultative Committee. The document outlines specific procedural requirements for handling requests before and after loan offer signing, prohibiting lenders from charging additional fees or modifying loan terms in response to such choices.
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