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EC's last minute Taxonomy change will boost energy-efficient mortgage production


By Bill Thornhill
19 Apr 2021
The European Commission has revised the final wording of its definition of an energy-efficient mortgage in its Taxonomy of Sustainable Economic Activities. The change will greatly improve prospects for originating Taxonomy-compliant green mortgages on buildings constructed before December 2020.
The EC has changed the wording of the delegated act which provides the detailed technical standards for the Taxonomy.
The revised draft takes account of comments made by banks that have signed up to the European Covered Bond Council’s Energy Efficient Mortgage Label. The latest wording presents
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Nationwide study shows green mortgages are less risky


By Bill Thornhill
01 Apr 2021
A study of 657,000 UK mortgages undertaken by Nationwide Building Society over the past year suggests that the greener building a mortgage is secured on, the lower the risk of default. Moreover, this relationship is not affected by a borrower’s wealth, the location, or the type of property.
Speaking at the European Covered Bond Council’s Bauhaus event earlier this week, Nationwide Building Society’s senior risk analyst for secured internal ratings-based modelling, Cesar Benedi-Bozalongo, and Zsolt Jaczko, who is head of retail IRB modelling, presented interim results on the most extensive study of its kind.They ....

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ECBC lights route to an energy efficient future


By Bill Thornhill
09 Feb 2021
The European Covered Bond Council is to launch its energy-efficient mortgage label on Friday with a virtual event. The label will act as a “lighthouse” for all stakeholders, marking a clear way towards a green housing renovation revolution, the ECBC’s Luca Bertalot told GlobalCapital on Tuesday.
“Just as a lighthouse can signal the way to safe harbours when navigating stormy and uncharted waters, so the energy-efficient mortgage label can be viewed as a lighthouse for consumers, lenders, investors and, crucially, regulators,” said Luca Bertalot, secretary general of the European Mortgage Federation European Covered Bond Council ....

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