FIAE and FEIN: Everything you need to know

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According to the Real Estate Credit Law that came into force in 2019, there are several documents that the bank has to give us when applying for a mortgage . Among them, the most notable documents are: the FEIN (European Standardized Information Sheet) and the FiAE (Standardized Warning Sheet). In addition, this law obliges banking entities to report all the characteristics of the mortgage as well as the clauses of the contract.


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What is the FiAE?
The Standardized Warning Sheet or FiAE is a document that the bank delivers Chinese Overseas America Number Data together with the FEIN Mortgage . This document contains all the information regarding the clauses, conditions and risks of the mortgage. Its main objective is to expand information about the mortgage loan to the client so that they are aware of all the details of the mortgage they are thinking of taking out.

The banking entity must deliver a copy of the FiAE to all holders of the mortgage loan, and also to the guarantors of the mortgage.

What information does the FiAE give?
The information provided by the FiAE as mortgage clients is the following:

If a mortgage is variable, it will tell us that its interest is calculated based on a reference index. This index must be one of those regulated according to Order EHA/2899/2011 (article 27.1) and which one it is must expressly appear on the file.
If it is a multi-currency mortgage, it notifies us what operations will be carried out in foreign currency and what that currency will be.
The client is informed that he will pay some incorporation costs . Legally, they can only be the appraisal of the home and the copy of the deed that must be passed between the notary and the mortgagee.
The conditions under which the early maturity clause can be established . This involves the financial institution seizing the house in the event of non-payment of the mortgage. And in the event of non-payment, the client must assume the expenses associated with the execution of the mortgage loan.
If a CAP or an interest rate risk hedging instrument is contracted, it will entail a cost to the client.
If it is a variable mortgage and has no limit, the client is informed that they will assume the increase in payments if the index is trading higher.



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What is the FEIN?
The FEIN shows the conditions of the mortgage from the bank to the client according to the data provided by the interested party when requesting a mortgage. Among these conditions we have the interest rate, the term of the mortgage, the number of installments and their amount, bonuses, commissions and the consequences in case of non-payment of the mortgage.

Before making this form, the client has sent the bank information about their financial situation and the amount of money they need to purchase the property. Therefore, it would be a personalized file used by clients as a mortgage comparator , thus looking at the loan conditions of other banks.

As it is binding on the bank for at least 10 days, the financial institution must maintain the conditions of its offer. The ideal is to use that period to go to other banking entities to request an offer for a mortgage.

Of course, it will only be binding on the bank. If the client is not interested in the mortgage then they have the right to cancel the relationship with the bank.