1. Under the Belgian regulation on residential mortgage credit (the “ML Regulation”), any individual or legal entity willing to own and hold receivables arising from residential mortgage loans, either by originating such loans or by purchasing mortgage loan receivables, must be authorised as a mortgage lender (“kredietgever inzake hypothecair krediet” / “prêteurs en crédit hypothécaire”). This authorisation shall be requested to, and granted by, the Belgian Financial Services and Markets Authority (the “FSMA”).
2. However, certain derogations from the normal authorisation conditions are available for two special categories of entities:
a) entities that only manage and recover mortgage loans; and
b) certain special types of purchasers of mortgage credit receivables, in particular securitisation vehicles and mobilisation institutions more generally.
These derogations were introduced in the ML Regulation in 2017, when existing mortgage credit lenders and existing mobilisation institutions were required to seek an updated licence (the “2017 Update”).
3. But what about sales of delinquent or defaulted residential mortgage loans. How does this fit within the ML Regulation and, more broadly, within the Belgian regulatory framework? Continue reading “Delinquent mortgage loans: the EU is working hard to promote solutions for dealing effectively and responsibly with NPLs – Our Belgian supervisory approach needs a change of direction.”