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Mortgage Credit Agreement Regulations

(s) a warning, if necessary, of the risk that the property may be withdrawn if the borrower does not comply with mortgage repayments; 24. (1) When a credit contract relates to a foreign currency loan, At the time of the conclusion of the credit contract, the lender at least ensures that, if the credit currency is different from the consumer`s national currency, the lender indicates that the consumer receives a regular warning at least when the exchange rate varies by more than 20%, if any, the right to convert the currency of the credit contract, or the possibility of renegotiating the conditions and other rules available to the consumer to limit the exchange risk. Where the credit agreement includes a provision to limit foreign exchange risk, the lender indicates the maximum amount the consumer could repay. If the credit contract does not provide for a provision limiting the exchange risk to which the consumer is subject to an exchange rate change of less than 20%, the lender indicates the value of the credit to the value of the credit, resulting from a 20% reduction in the value of the consumer`s national currency relative to the credit currency. The interest rate of the total credit commission does not exceed 42.6%; Without prejudice to the 2005/29/EC Directive, Member States require that any advertising and marketing communication concerning credit contracts be fair, clear and not misleading. In particular, it is prohibited to formulate formulations that may raise false expectations of a consumer regarding the availability or cost of a credit. (iii) the interest rate is not higher than the market rate, but the other conditions under which the loans are granted are more favourable to the borrower. Borrower-lender agreement, “borrower-lender-supplier agreement,” “credit union” and “comprehensive loan commission” have the meaning defined in section 60 L (interpretation of Chapter 14A); In order to ensure consistency between the calculation of the GPA for different types of credits, the assumptions used to calculate similar forms of credit agreements should generally be consistent. In this regard, assumptions relating to the Commission`s 2011/90/EU Directive of 14 November 2011 amending Schedule I, Part I, of the 2008/48/EC Directive of the European Parliament and the Council, which contain additional assumptions for the calculation of the annual percentage (13), which changes the assumptions relating to the CSA`s calculation.

While not all assumptions necessarily apply to credit contracts that are now available, product innovation is active in this sector and it is therefore necessary to make assumptions. In addition, the determination of the most commonly used degradation mechanism in the calculation of the CRPA should be based on reasonable expectations of the consumer mechanism most used for the type of product offered by that lender. For existing products, the wait should be based on the previous 12 months. A consumer may need additional support to decide which credit contract in the proposed product line is best suited to their needs and financial situation. Lenders and, where appropriate, credit intermediaries should provide such support with respect to the credit products they offer to the consumer, by personally explaining relevant information, including the essential characteristics of the products offered to the consumer, in order to enable the consumer to understand the impact it may have on its economic situation.