By William Kemble-Diaz
LONDON (Reuters) - Europe does not risk a U.S.-style subprime mortgage crisis and does not need more regulation to protect borrowers or to foster a single regional mortgage market, a top industry official said on Wednesday.
Annik Lambert, secretary general of the European Mortgage Federation (EMF), said lenders across the 27-nation European Union were fearful of possible legislation after the European Commission unveiled plans late last year which might oblige them to offer loans in a so-called responsible manner.
"The industry feels it would be very dangerous," she told the Reuters Housing Summit.
"We are definitely reluctant because as long as there is not a clear and acceptable definition of 'responsible lending' it would be much too dangerous for the lender because it would be much too easy afterwards for the judge to say, you didn't act responsibly," said Lambert, a former lawyer.
She warned the region's mortgage lenders risked getting an imposed, top-down solution if they failed to harmonize their lending policies by implementing a common code of conduct.
The Commission has said several issues needed further study before legislation was introduced in late 2008 or early 2009, including possible ways of promoting responsible lending in the wake of the U.S. subprime crisis.
Lambert said the EMF, which also advises the European Central Bank and Basel Committee on mortgage industry matters, has so far noted little fallout on the 5.7 trillion-euro ($8.4 trillion) European mortgage market as a result of the problems in the United States.
SUBPRIME FALLOUT Continued...
© Thomson Reuters 2008. All rights reserved.
| Japan Investment | Jul 01 - 2, 2008 | Country Summits |
| Global Real Estate | Jun 23 - 25, 2008 | Real Estate |
| Consumer and Retail | Jun 16 - 18, 2008 | Consumer Retail |
| Investment Outlook | Jun 09 - 12, 2008 | Financial Services / Exchanges |
| Global Energy | Jun 01 - 5, 2008 | Energy |
