Regulatory Alerts2010-11-30
Circular 7/2010 of the Bank of Spain on the development of certain aspects of the mortgage market
The Bank of Spain issued Circular 7/2010 to establish technical requirements for credit institutions and approved valuation services regarding the mortgage market. The regulation defines eligible rating agencies, permits loan-to-value ratios up to 95% for operations with specific bank guarantees or insurance, and mandates the declaration of equivalence for EU-based real estate collateral. It further imposes strict independence mechanisms, including detailed internal codes of conduct and annual technical committee reports, to prevent conflicts of interest in property valuation activities.
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