Mortgage credit in Greece
(By INKA Grecia)

Mortgage loan: Necessity and obstacles for a European legislative harmonization

INTRODUCTION

The intensive effort of the European Union is to unify the rights of European states aims and to converge, as much as possible, the basic structures of the law of each member state, in order to achieve through this convergence the adoption of COMMON applicable rules of law on BASIC sectors of right in the entire European Union.
A sector of justice which interests particularly the European Union is that of real law, and this because it is directly connected with the fortune of each European citizen and consequently has a great impact on the economic policy, which as we know, constitutes the basic structure of the European Union.

I. MORTAGE LOANS IN THE EUROPEAN UNION

A Commission Recommendation from March 2001 endorsed guidelines on harmonised information to be made available to consumers concerning "home loans" (mortgage or housing credit). According to Article 2 of this recommendation, a home loan means a credit to a consumer for the purchase or transformation of the private immovable property he owns or aims to acquire, secured either by a mortgage on immovable property or by a surety commonly used in a Member State for that purpose. The aim of the guidelines is to make it easier for consumers to compare loan products available from different lenders, including lenders from another Member State, and so allow consumers to make an informed choice. The guidelines were agreed in the form of a Voluntary Code of Conduct between the EU mortgage-lending industry and consumer groups.

A. CODE OF CONDUCT
When signing up to the Code, mortgage lenders commit themselves to giving prospective borrowers two sets of information before they sign a contract:
? General information as to the different types of products offered including the types of interest rate (fixed, variable or combinations thereof) and all additional costs associated with taking up a mortgage credit.
? Personalised information for the specific product the consumer is interested in, indicating for example the exact amounts to be paid over the full time span of the loan, as well as any possibility and conditions for early repayment.

The Commission is responsible for monitoring implementation of the Code and has published the list of mortgage lenders committed to respecting the Code.
The success of this initiative is crucial to improving consumer information and protection in retail financial markets across Europe, as outlined in the 1997 Communication on Consumer Confidence in Financial Services (see Press Release of EE IP/97/566) and the Financial Services Action Plan (see Press Release of EE IP/00/1269).
The Commission Recommendation endorsing the agreement and the Code of Conduct invites the Member States and all lenders offering home loans in the EU, regardless of whether they are members of the EU associations and federations who negotiated the Code, to comply with its terms no later than 30 September 2002. The Commission will publish the list of lenders adhering to the Code once they have had the opportunity to decide whether or not they will respect the principles of the Code. If the Commission concludes from its monitoring of the implementation of the Code that compliance is unsatisfactory or that insufficient numbers of mortgage lenders have signed up to the Code, it may consider proposing binding legal instruments.
In 2001, most people used to take out home loans in their own country. Prospective home owners often do not feel confident enough to choose a home loan product from another Member State. This stems particularly from the increasing sophistication of home loan packages, the lack of transparent financial information on the full range of mortgage options and liabilities involved and the difficulty of comparing products developed according to the culture and traditions of a particular Member State's home loan market. Research has shown that that comparable and transparent pricing is vital to the creation of a genuinely integrated EU financial services market particularly once prices were set in euros from January 2002. The Code of Conduct would encourage cross-border loans by facilitating the comparison of products.
By October the 1rst 2002 more than 3 600 mortgage lending institutions had already agreed to comply with the Voluntary Code of Conduct on housing loans when it came into effect on 30 September 2002. The purpose of the Code, drawn up by the European Union in March 2001 (see Press Release of EE IP/01/1755), is to guarantee that consumers receive transparent and comparable information on housing loans in order to encourage cross-border competition. The Commission is satisfied with the overall result despite gaps in the Code's geographical coverage.
David Byrne, former Commissioner for health and consumer protection, pointed out that the Commission had adopted a proposal for a new directive on consumer credit covering all forms of credit granted to individuals (see Press Release of EE IP/02/1289). However, mortgage-backed housing loans were excluded from the scope of the proposal, as they were covered by the European Code of Conduct. This was done specifically to allow the Code to be fully effective and to maximise its impact and effectiveness.
Institutions signing up to the Code undertake to provide consumers with general information on the housing loans they offer and personalised information in the form of a "European Standardised Information Sheet". This sheet describes the product itself, the nominal rate of interest, the annual percentage rate of charge (APRC), the amount of the loan granted, the duration of the loan, early repayment possibilities, and redress procedures.
The Commission invited all mortgage lenders in the Union to comply with the provisions of the Code by 30 September 2002. The Code was signed by five European consumer associations and six European credit sector associations. The Commission is particularly satisfied with the overall level of compliance. To date, over 3 600 lending institutions have officially notified the Commission that they will abide by the Code of Conduct, and the vast majority have announced they will implement it from 30 September 2002.
1. Presentation of the Register
The voluntary Code of Conduct on prior information for consumers concerning home loans was signed on 5 March 2001 by five European consumer associations (European Bureau of Consumers' Unions, Confederation of Family Organisations in the European Community, European Interregional Institute for Consumer Affairs, Association of European Consumers) and by six European credit associations offering home loans (European Mortgage Federation, European Federation of Finance House Associations, European Savings Bank Group, European Association of Cooperative Banks, European Federation of Building Societies, European Banking Federation).
The purpose of the Code is to ensure that consumers are given transparent and comparable information on mortgage options.
The bodies adhering to the Code have undertaken to provide consumers with general information on home loans and, before any contract is signed, with personalised information in a standard written format, known as a European Standardised Information Sheet. The sheet describes the product itself and includes the nominal rate of interest, the annual percentage rate of charge, the amount of the loan granted, the term of the loan, early repayment possibilities, redress procedures, etc.
The Commission, which facilitated the negotiations and the final agreement on the Code, adopted a Recommendation on 1 March 2001 inviting all lenders to comply with the provisions of the Code by 30 September 2002. It also undertook to monitor the implementation of the Code and its effectiveness and to set up a central Register listing which institutions offer home loans and which have adopted the Code.
2. Content of the Register
The Register includes only institutions that have notified the Commission that they offer both mortgage credit and that they adhere to the Code of Conduct.
The Register does not therefore include institutions that are in one of the following situations:
? they do not offer mortgage credit;
? they offer mortgage credit but do not adhere to the Code;
? they offer mortgage credit, adhere to the Code but have not notified the Commission of this.
? The Commission cannot guarantee that the information published in the Register is correct or be held liable for the consequences of any incorrect information, which only reflects the notifications it has received.
In its present form, which will be updated regularly, the Register contains notifications from 13 Member States. Data are still missing for Spain and France but will be incorporated as soon as the Commission receives them. The lack of information from those two countries does not necessarily mean that their lending institutions adhere or do not adhere to the Code.
3. The European Commission's Forum Group on Mortgage Credit
The European Commission's Forum Group on Mortgage Credit met for the first time on 27th March 2003. The Group included more than twenty experts from eleven Member States. It advised the Commission on how to make progress towards a genuine European market for home loans, which would make it easier for home buyers to save money by choosing mortgage products from lenders anywhere in the EU. National consumers associations, the credit and insurance sectors, and other stakeholders such as European notaries and chartered surveyors were all represented in the Group.
David Byrne, former responsible for Health and Consumer Protection, said, "Creating a single market in mortgage credit would be of great importance to consumers. Few if any financial commitments are larger than mortgages so if the market could be made more competitive and efficient, consumers would be the first to benefit".
The Group had two ambitious tasks:
? identify the main obstacles to the functioning of a genuine European mortgage credit market
? formulate political recommendations to the Commission on the most appropriate ways to achieve such an integrated market.
Mortgage credit is a huge market, which, at least at the retail level, still remains mostly national. At the end of 2001, the total amount of outstanding mortgage loans totalled around €3.9 trillion. Creating an integrated market in this field is expected to trigger price convergence. Studies conducted for the Commission last year showed that expected gains for borrowers could be as high as 0.14% of the EU's total GDP.
4. European Mortgage Federation
The European Mortgage Federation is a European trade association active in the credit sector. It groups together financial institutions whose main business consists of granting mortgage loans in the Member States of the European Union and Norway. The Federation was founded in 1967 and its secretariat is based in Brussels. The Federation brings together private and public mortgage lenders, including universal/commercial banks, mortgage banks, savings banks, mutual & co-operative banks, building societies, umbrella companies and insurance companies. Together they grant around 70% of residential and commercial mortgage loans in Europe.
The Federation provides the following services to its members:
? targeted lobby actions;
? regular production of publications and of industry statistics;
? specific coverage of the activities of the European Parliament;
? regular conferences and seminars on mortgage credit.
The Federation also studies the measures, which could be taken at European level to improve the overall mortgage-lending environment.
The European Mortgage Federation (EMF) is the voice of the European mortgage industry. It groups national associations as well as individual lenders from all European Member States as well as Switzerland, Norway and EU accession countries. Together, its members grant over 75% of residential and commercial mortgage loans in Europe. Mortgage lending is a growth industry. The volume of mortgage loans outstanding has more than doubled in nominal terms since 1991 and exceeded 3.9 trillion EUR at the end of 2001. This represents an average annual growth rate of 8%.
The Federation represents the Mortgage industry at European level. Its members come from all Member States of the European Union (as well as from EEA and EFTA States like Norway and Switzerland), and from a number of accession countries. It is based in Brussels and its Secretariat currently has 9 members of staff.
The Federation monitors the initiatives taken by EU institutions which have an impact on the mortgage industry. In particular, it focuses on issues such as:
? Capital markets and the funding of mortgage loans through the issue of mortgage bonds and mortgage backed securities,
? The security and enforceability of mortgage collateral,
? The transparency of consumer information.
The Federation is the key-talking partner of the European Commission, the Banking Advisory Committee, the European Central Bank and the Basel Committee on all questions relating to the European mortgage industry.
The Federation provides regular statistics on the European mortgage industry and has published a wide range of publications on mortgage credit in Europe.

B. DIRECTIVE 2000/12/EC ON UNDERTAKING AND EXERCICE OF ACTIVITY OF CREDIT INSTITUTIONS

The European Parliament and the Council of European Union with Directive 2000/12/EC, on "Undertaking and exercise of activity of credit institutions, conclude in paragraph 3 of the preamble that" it is necessary, for the facilitation of undertaking activity of credit institution and for the exercise, that the differences that create obstacles in the legislation of member states are overcome as for the arrangement, in which this activities subject".

At the article 69 of the Directive, in cases where the credit institutions (banks) provide loans and as a guarantee receive mortgages should be particularly careful, specifically is reported that «mortgage real estate should be liable in strict criteria of assessment and regular reassessment of their value, so that are taken into consideration the developments in the market of commercial real estate. The real estate should be used or let from householder".

From the above Directive it results that the European Union agrees with the idea of mortgage loan and simultaneously asks strict controls in mortgaged real estate in order that these are mortgaged to guarantee the loans provided by credit institutions.

II. THE MORTGAGE LOAN IN THE GREEK LAW

A. 1.Significance, characteristics and object of mortgage loan
Being referred to mortgage loan, we mean the loans which are provided by banks and in order to guarantee the return of the loan with the interest, they ask for LIMITED REAL
LAW on:
- Real estate, which is an object of sale (Civil Code (CC) 1259), entire or at ideal part.
- Property of floor or apartment (article 10 § 1 of law 3741/1929).
- Vertical property (Legislative Decree 1024/1971).
- Mine (article 66 § 1of law 210/1973).
- Usufruct of real estate (Civil Code (CC) 1259), even if it is not transferable. Thus, in real estates which are burdened with usufruct, two mortgages may exist (one with object the bare ownership and another with object the usufruct).
- Boats (articles 195 from the Code of Private Naval Right and
Legislative Decree 3899/1958 "about preferred boat mortgage".
- Plane (article 64 of Law 5017/1931, Presidential Decree 7/14.8.1931 articles 107,108, Legislative Decree 4536/1966 (about air mortgage).

According to the Greek law, in the mortgage loan, the legal reason which gives the lender (bank) the right to obtain mortgage in another’s real estate (mortgage debtor) is not provided directly by the law or juridical decision but only with private will (title of contract). see (Civil Code (CC) 1261). The title of contract is a special title, which is referred only to the real estates that are mentioned in its legal act of concession (Civil Code (CC) 1266). ?he legal act of concession of title is:

1.1 Partial: However, there is the chance the title can be granted with a convention between the lender (bank) and the owner of the mortgage (conventional mortgage), which is the most usual.
1.2. Real: because with this, the constitution of real right is provided.
1.3 Formal: because the constitutive type of notarial document should be included (Civil Code (CC) 1266).

2. Regulations on the mortgage loan in Greece
Greece has already adopted many decrees about mortgage loans, which have great resonance to almost all banking loans. More concretely, the sources of Greek Law which regulate generally or specifically the mortgage and indirectly the mortgage loan are the following:

2.1 Presidential Decree 252/1996 (OFFICIAL JOURNAL OF THE HELLENIC REPUBLIC A 186/1996) and additionally.
2.2 articles 1257 and the next of Urban Code.
2.3 articles 66,.439,.458,.475,.515 of the Introductive law of Urban Code.
2.4 Presidential decree 21/23 of September 1836.
2.5 Law 4112/1929.
2.6 Legislative decree 4201/1961.
2.7 Obligatory law 612/1968.

3. Content of legal act of concession of title in the mortgage loan between bank and lender
According to the principle of specialty, in the legal act, it should be defined:

3.1 The person granting the title (lender).
3.2 The lender of secured requirement (bank), that is to say, his beneficiary title.
3.3 The mortgaged object (Civil Code 1266).
3.4 The secured requirement.
3.5 It is obvious that the legal act can contain various terms, e.g. heresy etc according to the free will of parts.

4. Protection of mortgage loan contracting in the Greek Law
If the person granting the title is not the owner of the real estate or has no power of disposal, the legal act is invalid. The invalidity can be raised, according to the Civil Code (CC) 239 (this case should be distinguished from the regulated in the Civil Code (CC) 127). If the right of property of the person granting is limited because of real weights or deadlines, the same restrictions are in effect for the title as well as the mortgage which is obtained from that.
Concerning the responsibility of the person granting the title when he does not have any property or has defective or limited property, see. Civil Code (CC) 1267.

5. The registration of mortgage in the mortgage loan
When the conditions of essential right exist, the mortgage consists of the registration in a special public book, the book of mortgages. The registration is an action of the principle (registrar of mortgages), with which the real right of mortgage is created.
The registration of mortgage in the book of mortgages does not become self appointed from the registrar of mortgage, but after application of the interested part. More specifically, they can ask the registration of mortgage:
a. The lender of secured demand.
b. The debtor of secured demand
c. The third person who granted the title of mortgage for guarantee of debt.
d. The persons who (indicatively) are mentioned in the the Civil Code (CC) 1303.
e. The trustee of bankruptcy of the team of bankrupt creditors.
f. The notary who composed the document of the title of contract. The realisation of the registration is regulated according to the arrangements of the Civil Code (CC), the Presidential Decree of 21/23 September and mainly according to the Royal Decree 533/1963.

6. Other regulations of mortgage loan in the Greek legislation

The Greek legislation has a lot of and exhaustive provisions on the mortgage loan, what most times are detailed and they concern special subjects of property law and which is impossible to be analyzed in this report. In any case en brevity we can summarise the following special subjects beyond the ones already reported:

1. Invalidity of constitution (registration) of the mortgage (CC 1271, 1329)

The invalidity of constitution (registration) of the mortgage may be due to either a fault of one of the conditions of the essential law or a fault of registration, in order that this does not correspond to the principle of publicity.

2. Specific way of possession of valid mortgage (CC 1268).

As it was analyzed before.

3. Extent of the mortgage towards the objects of mortgage (horizontal and vertical property, floor, apartment, building, properties).

As it was analyzed before.

4. Components and supplements of the mortgage (CC 1282, 1283).

(a) the mortgage covers all (essential or unessential) components and the supplements of real estate, not only those that had this attribute at the registration but those that obtained this attribute after the registration too.
(b) Particular indication of components and supplements is not required.
(c) Despite the extension of the mortgage and in the unessential components or supplements, these continue to constitute self-existent mobile objects. (Case of mortgage with mobile object!).
(d) For the application of CC 1283 it is indifferent if the acquiring is fair or deceitful.

5. Extent of mortgage towards the secured demand.

Firstly, the mortgage covers only the capital of the secured requirement. According to the article 1269 (CC) "the registration of the mortgage becomes always under a fixed sum of money". This sum consists of the maximum sum the mortgage lender can take from the auction for satisfaction (of capital) of his demand. Thus, if in the registration it is mentioned that the secured sum is 100 and the capital of demand is 120, the lender will take from the auction only 100. However, this rule does not mean that the mortgage lender will take from the auction (if, of course, this suffices) the mentioned in the registration sum. The rule is in effect only in the case where the capital of the demand is equal or higher than the sum mentioned. But it is not in effect in the case where the capital is lower. In this case the mortgage lender will only take the real sum that is required for the satisfaction of his demand. Thus, if in the registration it is mentioned that the secured sum is 100 and the capital of demand is 80, the lender will take from the auction only 80. In practice, concern is taken, so that the mortgage covers the expenses and the interest. The mortgage cover of expenses (registration, juridical objective of income of demand etc). The mortgage guarantees also the expenses, under the condition that this is provided in the title and in the registration. If the mortgage does not cover the expenses, the mortgage lender has the title of CC 1262 No 7. The interests are only guaranteed provided that their sum and the capital are covered (is equal or lower) from the mentioned in the registration sum.

6. Differentiations of the form of mortgage according to its object, that means mortgage:

? In a third person’s real estate
? In bare ownership
? In usufruct, multiple or to entire
? In industrial or other installations

7. Differentiations of the form of mortgage according to the secured demand (CC 1258).

Mortgage that guarantees a future or under sect demand eg mortgage for the loan interests)

8. Rights of the mortgage debtor (CC 1290,.1284,.1299,.1269,.1313,.1270,.1319,.1324, 1308).

? The mortgage debtor has the complete management of the mortgage and he can contract any e?????? or real relation (6l however eg and exception CC 1290 no. 6).
Thus, eg the mortgage debtor has (apart from the property) the use and possession of the mortgage (except, naturally, if its use has been removed), can let it out, transfer it etc, has the protection of use and property etc - the exercise of these powers is placed under the obvious restriction, that the mortgage lender’s will be offended (6l. eg CC 1284, 1299).
? Right of restriction of the secured sum. (see CC 1269). The debtor can achieve reduction of the sum either with agreement with the lender or with juridical decision. The consent of the lender in the reduction of sum is given at the presence of a notary (CC 1313 § 2).
? The right of the debtor to ask for the correction of the registration,
when by mistake a higher sum was entered. The right to ask for the reduction of the sum, after having partially refunded the secured requirement.
? Right of restriction of registration. see CC 1270. The provision covers only the cases of registration of multiple mortgage according to general title (legal or juridical), does not cover the case of registration of multiple mortgage according to title of contract. ?he restriction of the registration can be in effect either with agreement with the mortgage lender or with juridical decision.
? Ask for the correction of errors of the registration.
? Ask for the erasure of the mortgage
? Ask for compensation for not notification to him copy of the summary (CC 1308) etc.

9. Rights of mortgage lender
(CC 1267,.1284,.1285,.1286,.1287,.1288,.1290,1299)

The main right of the mortgage lender is the so called real mortgage injunction, which is his right to be satisfied from the auction of the mortgage property.

10. Relations between personal debtor and third mortgage debtor

These relations are created when the third mortgage debtor satisfies the secured requirement – either with payment of debt or with the clearance of the pawn .

11. Relations between mortgage lenders (CC 1272,.1300, 1301)

The relations between mortgage lenders are regulated according to the principle of time priority. Between most mortgages there is a line of mortgage orders, in which each mortgage - depending on the time of registration of (CC 1272) - has first, second etc action. The line of mortgage orders determines at the obligatory implementation, the order of satisfaction of most of mortgage lenders (CC1300, 1301).

12. Changes in the secured requirement that affects the mortgage

Because between the secured requirement and the mortgage there is a relation of main and follower, changes in the secured requirement affect the mortgage. On the contrary, the secured requirement, as the main right, is not influenced by the changes in the right of mortgage

13. Changes of the lender or the debtor because of catholic succession (CC 1313)

This happens in case of death of the mortgage debtor or in case of fusion of bank with another one.

14. Cession of secured requirement (CC 1312)

This happens when the bank (mainly) cedes the secured requirement eg to another bank.

15. Privative succession of the secured debt (CC 475)

It exists when a third individual or legal person is responsible to achieve the requirement of the bank, undertaking the place of the mortgage debtor.

16. Renewal of the secured requirement (CC 439)

This befalls after particular agreement between the bank and the mortgage debtor.

17. Pawning of secured requirement (CC 1312, 476)

Possibility that is mainly given to the bank.

18. Privileged satisfaction of the mortgage lender from the auction of the mortgage property.

The formulation used in CC 1291, 1292 and 1294 create the impression that the mortgage lender, as well as with the usual injunction of obligation against the debtor, has real injunction against the mortgage debtor too. However, this is not right. The mortgage lender does not have any real injunction, but just an arising from the right of mortgage (real) claim, not only against the mortgage debtor to endure the obligatory implementation in the mortgage for privileged satisfaction of the secured requirement, but against lenders of the same debtor to endure the privileged, against their own requirements, satisfaction of the secured requirement from the auction too. When real mortgage injunction is mentioned in the CC, the real claim of mortgage lender who is satisfied with the obligatory implementation in the mortgage is perceived. This obligatory implementation does not start from the exercise of real injunction from the mortgage lender, but usually from each obligatory implementation for the satisfaction of mortgage requirement.

19. Distribution of the auction.

Concerns the way the sum, which will result from the auction of the real estate mortgage, is going to be distributed.

20. Chance of secured requirement afterwards the auction of the mortgage (CC 1293,.1296, 1298)

21. Chance of mortgage after the auction (CC 1318)

Concerns the payment or not of the mortgage.

22. Relations between mortgage lender and a third person.

In case there has been cession of secured requirement.

23. Reasons of payment of the mortgage

The reasons of payment of the mortgage is included in articles 1317 next. CC. Apart from them, however there are some other reasons which are mentioned in other articles of CC or arise from general arrangements. - The reasons of mortgage are connected either with the secured requirement, or the mortgage object, either concerning the title, or the right of mortgage, as:

? Payment of the secured requirement
? Prescription of the secured requirement
? Privative concession of the mortgage debt
? Cancellation of the privative or fulfilment of solvent sect, under
which the secured requirement takes place
? Confusion
? Disappearance of the mortgage. (As disappearance not only the material (destruction) but also the legal disappearance are accepted
? Distribution of common mortgage.
? Cancellation of dilatory sect with which the title of contract was granted
? Fulfilment of solvent sect with which was abandoned the title of contract
? Fulfilment of solvent deadline with which the title of contract was granted. CC 1318 No 4.
? The resignation of the mortgage. CC 1318 No 2, 1319.
? the resignation may concern only an ideal part of the mortgage or, in the
case of multiple mortgage, only certain of the mortgages.
? Auction of the mortgage. see. CC 1318 No 3
? Obligatory expropriation of the mortgage. Cf. and
more, No 270.
? Usucaption of liberation. see. CC 1053.

24. Results of payment (CC 1332)

After the payment, the mortgage stops existing in the essential right of mortgages. – see and CC 1332. If however there is no obliteration, the paid mortgage maintains in the formal right of mortgages.

25. The obliteration of mortgage

The obliteration of the mortgage is aimed at the liquidation of legal situation of the mortgage, as this is presented in specific books and is dictated by the principle of publicity.
The obliteration is achieved:

? With consent of the mortgage lender or
? According to juridical decision, that orders or
? In case of payment of the mortgage with obligatory auction, according to the summary of adjudicative report. The obliteration is usually connected with the payment of the mortgage. Obliteration however, we have in cases of invalidity of constitution of (registration) of the mortgage.

The obliteration of the mortgage does not activate from the registrar of the mortgages, but only after the written application of the interested. Each one who has legal interest is legalised to submit the application.

26. Problem of protection fair third persons

Because for the suppression of mortgages, payment and obliteration are required, which it is normal to happen in time, longer than that of payment, the book of mortgages does not present, at the interval, the true legal situation regarding with the paid mortgage property. The same happens and in cases of invalid obliteration of the mortgage etc. In all these cases, a problem of protection of fair third persons who believed that the object of the transaction was burdened or not burdened with mortgage (while, actually the mortgage did not exist or respectively existed). The CC does not contain any special orders about this problem.

27. The system of transcription and the registration of mortgage.

The system is particularly detailed and is referred very analytically
to the national law and provides several guarantees for both contracting sides.

7. The incorporation of Greece

Greece already has incorporated a lot of regulations on mortgage but also on mortgage loan. The most recent regulation that concerning mortgage loan was Presidential Decree 252/1996 (OFFICIAL JOURNAL OF THE HELLENIC REPUBLIC A 186/1996) and which was published to conformity
a) of Community Actuarial Directives 88/357/EC, 90/618/EC, 90/619/EC, 92/49/EC, 92/96/EC, 91/674/EC,
b) of Directive 91/371/EC, agreement EEC of - Swiss Confederation,
c) of Decision 94/1,2/ECAS, EC, agreement on the European Economic Space, and
d) of the Treaty on the adhesion of Austria, Finland and Sweden in the European Union.

Concretely article 8 paragraph 3 case D of Presidential Decree 252/1996 (OFFICIAL JOURNAL OF THE HELLENIC REPUBLIC A 186/1996) reports explicitly that "Requirements from loans to individuals or anonymous companies who function in EU and EOX member states will be granted with first mortgage or prenotation of first mortgage on real estates inside of city plans or with insurance policy of sector of" credits "that is published by actuarial enterprise that functions in EU and E.O.X member states of. and is other than the one that allocates in actuarial placement or with guarantee of credit institution of EU and E.O.X. member states or with combination of the above secured".

However Greece according to article 8 paragraph 3 case D (last paragraph), maintained the right to provide her credit institutions "not ensured loans to individuals, which are allowed when justified by the economic and social situation of the borrower".

B. CONCLUSION

From what is reported above, it is concluded that Greece already has incorporated mortgage loan, but still many of the problems haven’t been untied. The confrontation of special subjects on loans issues and in particular mortgage that concern European citizens or European anonymous companies should be sought via the European Community Law, in order that the result is in favor of the unification of rights of European member states.