September opened under the banner of transparency for home mortgages. From the 5th of this month, those who go to the bank to collect information can obtain clear and precise answers, especially on the costs associated with the loan. All data is entered into standardized forms (Esis, European standardized information sheet), which make it easier to compare the proposals of the different institutes in each of the 15 EU countries. The innovation, in fact, originates from a recommendation from the European Commission which led to a Code of Conduct on mortgages, drawn up by banks and consumer associations.
The Code. In Italy, according to the ABI, almost the entire banking system has adhered to the Code, but some institutions are not yet fully operational due to the difficulties encountered in reprogramming the IT system. Many banks plan to publish their statements online within a few months. 'The adoption of the Code - comments Roberto Anedda, marketing director of MutuiOnline - confirms the need for transparency on mortgages, which has long been requested by consumers, and with the new rules it will be easier to reconstruct the mechanisms for calculating the rate and all the expenses'.
The Code, however, 'does not represent a 'revolution' - explains Maurizio Radici, head of special credits at IntesaBci -: serious banks were already operating in a logic of transparency. Moreover, customers, also thanks to the Internet, are more mature and informed than in the past'. Several institutions were already in the habit of providing prospective borrowers with an information prospectus. 'Our bank - confirms Jacques Lanternier, managing director of UCB, an institution specializing in mortgages - for twelve years now, after having met the customer, has given him a financing proposal, which today has been adapted to the European model'.
What's new and aspects to improve. Among the most important innovations of the Esis is the indication of the APR, the global effective annual rate, which, as underlined by Alberto Favole, of the retail management of Unicredit Banca, 'represents the real cost of the mortgage and the most suitable parameter for comparing the different proposals'. But the very methods of calculating the APR raise doubts among consumer associations. For Fabio Picciolini of Adiconsum 'excluding appraisal costs or property insurance because they are not purely bank expenses is a stretch, given that in many cases these costs weigh on the borrower'.
Altroconsumo, however, contests the adherence to the Code on a voluntary rather than mandatory basis, the absence of controls and the lack of sanctions against 'non-compliant' institutions. The Code, in fact, does not provide for any type of penalty, even if the Esis reports the telephone number of the bank's complaints office. According to Vincenzo De Felice, from Bpm's marketing area, 'compliance with the new rules is an ethical issue and it is in the bank's interest to defend its integrity'.
The Code, however, could be improved: 'If it required credit institutions - explains Gualtiero Terzi, head of retail financing at Bnl - to provide information also during the life of the mortgage, not just during the stipulation phase'. It is by inserting in the information sheets - adds Donatella Squellerio, marketing director of Abbey National Bank - any costs of opening the mandatory current account. It would also be useful to consider the penalty for early repayment when calculating the APR. It must also be kept in mind that the conditions included in the prospectuses have a limited duration: therefore, it is a good idea to ask how long they are valid.
Adherence to the Code is communicated by banks through posters in branches or information in account statements. But there are exceptions: the Banco Popolare di Verona e Novara group, for example, organized a real press campaign also using local television and radio.
source: Il Sole 24 Ore
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