thranx on 22 April 2013
"The legislation will force lenders in Europe's 6.5 trillion euro ($8.5 trillion) mortgage market to check the creditworthiness of potential customers and their ability to repay, effectively banning self-certified or "liar" loans.
The rules would also make it illegal for those carrying out credit checks within banks and other lenders to have their pay linked to the number of mortgages they approve - a practice blamed for encouraging irresponsible lending in the past."
They are trying to close the problems that created the housing bubble (loans to people who cant afford them, and stopping basing pay off of number of loans given out) while here in the us we are getting ready for a repeat of the housing bubble.
