iffEvaluation of developments in credit scoring for real estate consumer loan contracts

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Institut für finanzdienstleistungen e.V. (iff)

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Institut für finanzdienstleistungen e.V. (iff), final report

This research project aims to investigate developments in the area of creditworthiness assessment (KWP) for real estate consumer loan agreements (hereinafter, real estate consumer loans) in Germany since 2007. This period includes the transposition of Directive 2014/17/EU on consumer credit agreements relating to residential immovable property (WIKR) into German law, which was accompanied by further accompanying regulatory measures that came into force. The focus of the research project is to investigate whether the WIKR has achieved its intended goal of effectively protecting consumers from overcharging for financing in practice. The focus is explicitly on the application of the provision by credit institutions. The research objective was, on the one hand, to work out to what extent the practice of the KWP fulfills the relevant legislation (effectiveness in the sense of compliance as well as utilization).

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