On 28 June 2024, the European Banking Authority (EBA) updated its guidelines on arrears and foreclosures.

The update follows changes to the Mortgage Credit Directive (MCD).

The EBA originally issued the guidelines in 2015 to support the transposition of Article 28 of the MCD which deals with arrears and foreclosure. The EBA guidelines became applicable on the same day as the MCD on 21 March 2016. In December 2021, the Credit Servicers Directive entered into force and included amendments to Article 28(1) of the MCD by replacing the existing wording with a near verbatim wording of guideline 4 of the EBA guidelines, which covers the resolution process between creditor and borrower. The amended MCD text became applicable at the end of December 2023.

In the updated guidelines now published the EBA has removed guideline 4 on resolution process given that it is now embedded in the MCD. The aggregate requirements set out in the MCD and the EBA guidelines have remained unchanged.

The updated EBA guidelines will apply within two months of the publication of the translated versions.