In the chapter on mortgage intermediaries that I share with lawyer Cristina Borrallo of the book edited by Bosch ‘ Comments on the Regulatory Law of Real Estate Credit Contracts ‘, collective work coordinated by Dr. José María López Jiménez , openly criticized the myopia of the legislator when regulating mortgage advice.
A book on Law 5/2019, of March 15, regulator of real estate credit contracts that I recommend reading to all mortgaged and potential borrowers who want to know their rights and duties in depth, and professionals who decide to be experts at work Law 5/2019 considers the intermediation service different from that of advice. I do not conceive a quality mortgage intermediation without advice, moreover, a mortgage intermediary that does not advise is more a mortgage comparator than a mortgage professional.
Advice on real estate loans
Article 19 of Law 5/2019 regulates advice related to real estate loans. The first thing it does is limit the provision of the advisory service to real estate lenders, real estate credit intermediaries or their designated representatives. What is supposed to leave out other professionals, whether lawyers or economists specialized in the mortgage sector. However, the rule adds that these services may be provided by the persons referred to in article 26.3 (persons who offer mortgage counseling “as an accessory within the framework of a professional activity regulated by legal or regulatory provisions that do not exclude the provision of such activities or services, and provided that the credit intermediation activity, without constituting its main activity, is intimately related to the provision of the main contract between the professional and the borrower »), as well as persons who, without being part of the categories already mentioned, they provide advisory services, provided that they have been recognized by the competent authorities and are subject to their supervision in accordance with the requirements established in this Law for real estate credit intermediaries.
Royal Decree 309/2019 limits in this way the independent advice that, in practice, in Spain the possibility of providing independent mortgage advice disappearing in compliance with the legislation, in my opinion. It says that to be before an independent advice the following requirements must be fulfilled.
Who can be a mortgage advisor?
Real estate credit counseling is not a free activity. Only complying with the requirements of the regulation can be advised. I agree with Fernando Zunzunegui that real estate agents are allowed to advise, accrediting training and knowledge, in addition to lenders, intermediaries and their designated representatives.
In my view, for now it will not be easy to find an independent mortgage advisor , given the limitations and demands, sometimes absurd, of the Law.
Regulation of mortgage advice
I recommend the article by Dr. Fernando Zunzunegui , friend of the house and also author of the book edited by Bosch commented, regarding the advice on the Real Estate Credit Law ( read PDF ). His vision is that it is positive to regulate the mortgage advice separately, in which I agree, although what Law 5/2019 defines as mortgage advice I consider has no substance to separate it from intermediation. In other words, mortgage counseling is much more than the legal definition of this recent rule.