Edition 2020 Ninth edition

2.1.2.6. 
Further guidance on the valuation of immovable and movable property is 
provided in Section 7 of the EBA guidelines on loan origination and moni-
toring of 29 May 2020. These guidelines apply to any valuation, monitoring 
and revaluation of immovable property and movable property collateral 
conducted after 30 June 2021.
2.1.2.7. 
Residential mortgages — The EU has also put in place rules for the val-
uation of property for the purposes of lending to consumers, essentially 
residential mortgages. These rules are laid down in the Mortgage Credit 
Directive 2014/17/EU.
2.1.2.8. 
Among other matters, this Directive requires Member States to ensure 
that reliable valuation standards are used when assessing residential prop-
erty for mortgage purposes. In this context, Recital 26 of the Mortgage 
Credit Directive states that for standards to be reliable they should take 
into account internationally recognised valuation standards, specifically 
mentioning the European Valuation Standards. Creditors should "adopt ap-
praisal standards and methods that lead to realistic and substantiated prop-
erty appraisals in order to ensure that all appraisal reports are prepared with 
appropriate professional skill and diligence and that appraisers meet certain 
qualification requirements and to maintain adequate appraisal documenta-
tion for securities that is comprehensive and plausible".
2.1.2.9. 
Article 19 of the Mortgage Credit Directive requires that property valuers 
be "professionally competent and sufficiently independent from the credit 
underwriting process so that they can provide an impartial and objective val-
uation which shall be documented in a durable medium and of which a record 
shall be kept by the creditor".
Legislation
Directive 2013/36/EU of the European Parliament and of the Council of 26 June 
2013 on access to the activity of credit institutions and the prudential supervision 
of credit institutions and investment firms, amending Directive 2002/87/EC and 
repealing Directives 2006/48/EC and 2006/49/EC
Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 
June 2013 on prudential requirements for credit institutions and investment firms 
and amending Regulation (EU) No 648/2012

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VII. European Union Legislation and Property Valuation
European Valuation Standards 2020
Directive 2014/17/EU of the European Parliament and of the Council of 4 Febru-
ary 2014 on credit agreements for consumers relating to residential immovable 
property and amending Directives 2008/48/EC and 2013/36/EU and Regulation 
(EU) No 1093/2010
Single Rulebook of the European Banking Authority
Manual for the Asset Quality Review of the European Central Bank
Guidelines of the European Banking Authority on loan origination and monitoring