|
 Problems in the sub-prime mortgage market have prompted the EU to call for a more transparent home loans market in light of the recent credit crunch, according to reports.
A document drawn up by the EU, the contents of which is expected to be proposed by EU internal market commissioner Charlie McCreevy, is expected to promote more responsible lending practices throughout the union, reports Reuters.
The news agency states the draft information reads: "The recent developments in sub-prime markets have illustrated the need for transparency in the mortgage funding business, particularly from the end investors' perspective."
It is expected that the proposals will be launched on December 19th and will take effect in 2008.
The document adds that the EU feels a directive is the best "tool" to enforce responsible lending - which home buyers could benefit from - and that it is to liaise with a number of stakeholders to find the best option.
Concern surrounding the sub-prime market comes after economic conditions in the US left homeowners with a high borrowing to earning ratio unable to make mortgage payments and therefore forced lenders to call in their debts. This means that some home owners may have been left avoiding repossession.
In the UK, Northern Rock received financial aid from the government worth around £23 billion after also feeling the effects of this global 'credit crunch'.
What are Social Bookmarks?
 Email this to a friend
 Printable Version
<< Homebuyer News Archive
|
