What does WIKR mean in GERMAN

The Wohnimmobilienkreditrichtlinie (WIKR) is a European regulation that sets out requirements for responsible mortgage lending. This includes borrower and lender assessment criteria, information requirements and disclosure regulations. The aim of the regulation is to support sound residential mortgage lending practices and promote financial stability in Europe.

The WIKR was adopted by the European Parliament in 2014 and came into force on 21 March 2016.

The regulation applies to financial institutions offering residential mortgages located in countries within the European Economic Area (EEA). It should be noted that each individual country can decide which of its borrowers are subject to the relevant provisions.

The WIKR applies to all types of residential mortgages, including mortgages secured on residential property such as one-to-four family homes, holiday homes, owner-occupied apartments or tenanted properties.

Lenders must adhere to certain requirements set forth in this regulation when offering residential mortgages in order to maintain compliance with applicable local laws. These requirements include assessing borrower creditworthiness, performing affordability analysis and ensuring appropriate loan disclosure information is provided to borrowers at all times throughout their mortgage process. Furthermore, lenders must adhere to specific reporting requirements for early repayments that are made against loans secured on residential real estate property located within EEA countries by consumers or related parties.

Yes, there are several exemptions from this regulation for certain groups such as central banks and public sector entities as well as businesses operating under national guarantee systems or collective investment institutions funded by private deposits. Additionally, loans extended before 21 March 2016 with maturities shorter than 20 years also fall outside its scope.

This regulation helps ensure responsible mortgage lending practices by requiring lenders to assess borrower creditworthiness properly and perform affordability analysis prior to approving a loan application. Moreover, it requires that clear disclosure information be provided both before and during the life cycle of a loan so that consumers can make informed decisions about their borrowing options without facing potential surprises along the way. Lastly, it puts into place special consumer protection rules which require enhanced disclosures when making changes or transfers related to an existing loan agreement after drawing down has taken place.

Yes, failure to comply with this regulation may result in administrative penalties being imposed on offenders depending on each individual country’s internal legal framework regarding sanctions against infringements of applicable EU law.