Home Loan (Amendment) Regulations, 2014

L.N. 266 of 2014

CONSUMER AFFAIRS ACT

(CAP. 378)

Home Loan (Amendment) Regulations, 2014

IN exercise of the powers conferred upon him by article 7 of the

Consumer Affairs Act, the Minister for Social Dialogue, Consumer

Affairs and Civil Liberties, after consultation with the Consumer

Affairs Council, has made the following regulations:-

The title of these regulations is the Home Loan Citation.

(Amendment) Regulations, 2014, and these regulations shall be read

and construed as one with the Home Loan Regulations, hereinafter S.L. 378.10

referred to as "the principal regulations".

Regulation 2 of the principal regulations shall be amended Amends

regulation 2 of

as follows

the principal

regulations.

(a)

in paragraph (c) of the definition "credit

intermediary", for the words "on behalf of the creditor;" there

shall be substituted the words "on behalf of the creditor:", and

immediately thereafter there shall be added the following new

proviso

"Provided that a Notary Public engaged with the

publication of a deed of loan to which these regulations

make reference shall not be construed as a credit

intermediary at any stage;";

(b)

for the definition "home loan agreement" there

shall be substituted the following

"home loan agreement" means an agreement

whereby a creditor, directly or through a credit

intermediary, grants or promises to grant, to a consumer, a

credit within the meaning of regulation 3 in the form of a

deferred payment or other similar financial arrangement,

and this shall be distinct from the public deed of loan;";

(c)

immediately after the definition "Member State"

there shall be added the following new definition

"public deed of loan" means the legal instrument

signed before a Notary Public as part of the security

required by the creditor in the home loan agreement;"; and

(d)

for the definition "total cost of the credit to the

consumer" there shall be substituted the following

" "total cost of the credit to the consumer" means

all the costs, including interest, commissions, taxes and

any other kind of fees and, or charge howsoever described,

or to whomsoever it is paid, which the consumer is

required to pay in connection with the home loan

agreement and which are known to the creditor, except for

the costs listed in regulation 21(5)

Provided that costs in respect of ancillary services

relating to the home loan agreement, in particular

insurance premiums, are also included if, in addition, the

conclusion of a service contract is compulsory in order to

obtain the credit or to obtain it on the terms and conditions

marketed.".

Sub-regulation (3) of regulation 14 of the principal

regulations shall be substituted by the following

"(3) Without prejudice to the Notarial

Profession and Notarial Archives Act, the

consumer shall be entitled to receive from the

Notary Public

(a)

a copy of the public deed of

loan, at his request, immediately upon

the signing thereof; and

(b)

in all instances, a copy of

the public deed of loan duly registered at

the Public Registry by the Notary

Public, within ten days from such

registration.".

Regulation 15 of the principal regulations shall be

amended as follows

(a)

in sub-regulation (1) thereof, for the words "The

agreement referred to in regulation 14(3)" there shall be

substituted the words "The home loan agreement"; and

(b)

immediately after sub-regulation (3) thereof, there

shall be added the following new sub-regulation

"(4) Every public deed of loan to which these

regulations apply shall make a direct reference to the home

loan agreement entered into and between the creditor and,

or the credit intermediary and the consumer, the date

thereof and shall state expressly that the consumer has

received, read, understood and agreed to all the terms set

out in the home loan agreement, after due explanation by

the creditor and, or the credit intermediary, as may be

amended from time to time according to the terms

thereof.".

Sub-regulation (3) of regulation 16 of the principal Amends

regulation 16 of

regulations shall be substituted by the following

the principal

regulations.

"(3) In determining the compensation for possible costs

directly linked to early repayment of credit referred to in sub-

regulation (2)(b), a creditor or credit intermediary shall apply

the same calculations to all consumers irrespective of the reason

why early repayment was effected.".

In paragraph (a) of sub-regulation (3) of regulation 19 of Amends

the principal regulations, for the words "A home loan advertisement regulation

the principal

shall include" there shall substituted the words "A home loan regulations.

advertisement which includes an interest rate or any figure relating to

the cost of the credit to the consumer shall include".

Regulation 21 of the principal regulations shall be Amends

regulation 21 of

amended as follows

the principal

regulations.

(a)

sub-regulation (4) thereof shall be substituted by

the following

"(4) Where the opening of an account is

obligatory in order to obtain the credit according to the

home loan agreement, the following costs shall be included

in the total cost of the credit to the consumer

(a) the costs of opening and maintaining

such an account;

(b) the costs of using a means of payment

for both payment transactions and drawdowns on

that account; and

(c) other costs relating to payment

transactions, unless the costs have been clearly and

separately shown in the home loan agreement or in

any other agreement concluded with the

consumer."; and

(b)

sub-regulation (5) thereof shall be substituted by

the following

"(5) The following costs shall be excluded from

the total cost of credit to the consumer

(a)

notarial fees;

(b) Public Registry and Land Registry

enrolment fees;

(c)

costs relating to searches regarding

title;

(d)

costs related to property valuation;

(e)

costs associated with the provision of

security;

(f)

stamp duties; and

(g) any other fees ancillary

to

the

publication of the public deed of loan.".

Item (i) of the First Schedule to the principal regulations

Amends the

First Schedule

shall be substituted by the following

to the principal

regulations.

"(i)

a description of the conditions attached to early

repayment;".

In paragraph 7 of the ESIS Model in Part A of the Second

Amends the

Schedule to the principal regulations, for the words "(e.g. notary

Schedule to the

fees)" there shall be substituted the words "(e.g. Notary Public’s

regulations.

fees)".

€0.36