Description
In the past, the Belgian National Bank was requesting creditors to demand from the consumers the EPC-certificates and include them in the credit file before granting a credit aimed a financing the acquisition of an immovable property. Creditors are not yet obliged to take the EPC-standards into account while granting credit as a credit condition (aside from the consumer's creditworthiness). Nonetheless, and even strengthened by the EBA Guidelines on Loan Origination and Monitoring, creditors are obliged to report the EPC certificates to the National Bank which used these amongst others to map the Belgian real estate market and the value of the immovable collateral on the balance sheets of banks for securing their assets and meeting their prudential obligations (e.g. Basel-norms).Recently, the Belgian and regional governments and legislators enacted rules containing positive obligations for new home owners to renovate the building they intend to buy. It is clear, as currently the rules only apply to people who buy an immovable good, that in the near future new as well as standing home owners will be obliged to make their houses more eco-friendly.
Although, we all want to have a better and more durable future, and do something against the climate change, the question raises how consumers will be able to pay for these extra, and sometimes unforeseen and/or unhoped costs. Consumer credit regulation (in its broadest meaning of (consumer or mortgage) credit granted to consumers) is based on (i) the idea that there exists no right to credit and (ii) if a consumer is awarded credit it should be clear he was first deemed to be reasonably creditworthy before the positive credit decision was taken. In essence, the MCD and consumer credit directive want to protect consumers (and the market) against over indebtedness and the credit default risk. This paper will examine whether the ESG-goals are subordinated, complimentary or even (e.g. via public and prudential regulation) superior to the creditworthiness analysis.
Finally, I wish to draw the attention to the fact that many renovation or green energy loans in Belgium are qualified as consumer credit agreements (falling under Directive 2008/48/EC), reason why my paper proposes to look at both regimes. Indeed, these loans (even for high amounts of up to 75.000 EUR (and more)) are granted without a mortgage and aimed at 'renovating' houses; reason why the rules on mortgage lending (implemented by the MCD) in Belgium currently do not apply to many green energy loans.
| Period | 16 Jun 2023 |
|---|---|
| Event title | Renovation Wave for Europe: MEPS, green mrotgages and multi-unit buildings |
| Event type | Conference |
| Location | Barcelona, SpainShow on map |