This directive is significant as the first piece of European legislation in the field of mortgages and the first bill relating to financial reform which focuses on a retail banking product. Mortgages are the most important financial commitment most European families make and the mortgage market represents more than the 52% of the EU’s GDP.
The agreement reached with the Council will contribute to reactivating the economies of many member states, while avoiding the irresponsible mortgage lending and borrowing which was a major cause of the financial crisis. This directive sets out the path and principles for a profound reform of the European mortgages market, to be implemented by member states over the next two years.