European Banking Authority Amends Guidelines on Arrears and Foreclosure Following Changes to Mortgage Credit Directive

The European Banking Authority has published amended guidelines on arrears and foreclosure following the changes introduced in the Mortgage Credit Directive. The amendments are as follows:

• deletion of guideline 4 on the resolution process between creditor and borrower. This reflects the amendment made to Article 28 by the Credit Servicers Directive, which inserted wording into new Article 28(1) that was practically identical to guideline 4. The EBA has also made consequential changes to guideline 5;
• deletion of the material in the guidelines concerning the regime for "national competent authorities" (i.e., national regulators) designated as competent under the MCD that are not also national competent authorities under the EBA Regulation. This regime is no longer needed following amendments to the definition of "competent authorities" in the EBA Regulation made by Regulation (EU) 2019/2175; and
• a new guideline 6 on outsourcing that cross-refers to the EBA guidelines on outsourcing arrangements.

The amendments to the guidelines will apply from two months after publication of the translations into the EU official languages.

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