Mortgage Credit Directive Compliance Monitoring

The European parliament adopted a directive on credit agreements for consumers relating to residential immovable property. This legislation introduces an EU-wide passport regime and framework of rules for mortgage firms such as creditors and intermediaries. It aims to develop a more transparent and efficient credit market through fair credit agreements with a high level of consumer protection preventing household over-indebtedness. It creates among others harmonisation in the calculation of the annual percentage rate of charge (APRC) and defines the mandatory pre-contractual information through the European Standardised Information Sheet (ESIS). Creditors, (tied) Credit Intermediaries and Appointed Representatives must comply with MCD and its transposition by the Member States into national law as of March 2016.

The compliance monitoring tool allows you to keep track of the latest changes in the legislation and the impact of these changes on your organisation. The compliance monitoring tool is an online knowledge based tool that uses decision trees to simplify the process of assessing legal requirements. By using this tool, you are able to limit your efforts to those sections of the legislation that are relevant for your organisation and disregard the sections that do not apply.

Not just Technology like Artificial Intelligence but content driven!Head Legal @ Global Asset Manager

Key Features Of The Compendor Compliance Monitoring tool

  • Translation of complex legal text into understandable and clear business rules based upon legal interpretation and industry best practices
  • Up-to-date business rules, Compendor monitors changes to the legislation (Level 2) and updates the compliance monitoring tool
  • Serves as a basis to conduct the compliancy check with national law
  • Pre-defined control questions to determine which business rules are applicable to your organisation, distribution channels and product offering
  • In-line help available on definitions and more detailed background information
  • Excellent support for identifying and describing GAP’s and definition of measures
  • Collection of evidence on compliancy statements
  • Context sensitive feedback module to allow users to submit questions to a MCD expert team
  • Extensive reporting functionality and audit trail

Key Benefits of Using this Tool

  • Shorter turnaround for implementing and monitoring MCD
  • Lower costs by re-using the pre-defined control questions and business rules tailored towards the specific role of the user and product offering
  • Higher quality compliance monitoring through expert guidance and enforcing completeness and consistency
  • Re-usable compliance monitor tool (annual review)

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