The present proposal has to be seen in the context of efforts to create an internal market for mortgage credit and against the background of the financial crisis. The financial crisis has had a substantial impact on EU citizens. Although an important contributing factor was the growth in securitization, which allowed creditors1 to pass the risk of their lending portfolios to investors, consumers have faced the consequences firsthand. Many have lost confidence in the financial sector and certain lending practices that used to prevail are now having a direct impact. As borrowers have found their loans increasingly unaffordable, defaults and foreclosures have risen. Addressing irresponsible lending and borrowing is therefore an important element in financial reform efforts. For several years, the Commission has engaged in a comprehensive review of EU residential mortgage markets to ensure the efficient functioning of the single market. The White Paper on the integration of EU mortgage markets3 previously identified areas of direct relevance to responsible lending and borrowing (e.g. pre-contractual information, advice, assessment of creditworthiness, early repayment and credit intermediation) acting as barriers to the efficient functioning of the single market. These barriers prevent the pursuit of business or raise the cost of doing business in another Member State and lead to consumer detriment through low consumer confidence, higher costs and reduced customer mobility, both domestically and cross-border. In view of the problems brought to light in the financial crisis and in the context of efforts to ensure an efficient and competitive single market, the Commission undertook to come forward with measures on responsible lending and borrowing, including a reliable framework on credit intermediation.4 To this end, the objectives of the proposal are twofold. First, it aims to create an efficient and competitive single market for consumers, creditors and credit intermediaries with a high level of protection by fostering consumer confidence, customer mobility, the cross-border activity of creditors and credit intermediaries, and a level playing field while respecting fundamental rights, particularly the right to the protection of personal data, enshrined in the Charter of Fundamental Rights of the European Union. Second, the proposal seeks to promote financial stability by ensuring that mortgage credit markets operate in a responsible manner.