Danish Finanstilsynet has issued enforcement orders to two companies that provided consumer residential credit agreements secured by real estate without holding an authorisation as a property credit institution, and reiterated that such lending requires a licence even when it is not the firm’s main business. In the two cases, the firms provided 11 and 12 residential credit agreements to consumers over a short period, which Finanstilsynet assessed as commercial activity subject to the licensing requirement under section 2(1) of the Act on Property Credit Institutions. The authority also warned that professional advisers, including lawyers and accountants, may be overlooking the authorisation requirement, and noted that seller-financed mortgage deeds used in home sales are also treated as residential credit and can require authorisation where the buyer is a consumer. Banks, mortgage credit institutions and investment management companies are exempt, and Finanstilsynet has published reports on its investigations of the two companies.
Danish Finanstilsynet 2025-09-23
Danish Finanstilsynet issues orders to two firms for providing consumer mortgage credit without authorisation
The Danish Finanstilsynet issued enforcement orders to two companies for providing consumer residential credit agreements secured by real estate without proper authorization as property credit institutions. Such lending requires a license under section 2(1) of the Act on Property Credit Institutions, even if not the firm's main business. It also highlighted potential oversight by professional advisers and clarified that seller-financed mortgage deeds in home sales may require authorization when the buyer is a consumer.