The Polish government approved a mortgage lending bill under which mortgages would be offered only in the currency in which customers obtain a majority of their income and would be issued only by entities overseen by the Financial Supervision Authority, Rzeczpospolita reported Dec. 29.
The approved bill, the aim of which is to transpose the EU mortgage credit directive into Poland's legislative system, would help enhance the comparability and transparency of mortgage products and strengthen the position of consumers. The draft also includes provisions enabling competent verification of clients' creditworthiness and their protection from unreliable advertising, the news report noted.
The bill would also ban banks from paying commissions to intermediaries for selling their mortgage products, a move that would affect thousands of mortgage advisers operating in the country, including listed company Open Finance, Puls Biznesu said the same day.
Under the proposal, which will now be discussed by the parliament, fees for mortgage advisory services would be paid by clients to ensure they receive the best product rather than one for which the adviser obtained the highest commission from a bank. The bill provides for a 12-month transition period for financial advisers to adjust their business models to the new rules.