HCSF converts its recommendation to ” Legally binding standard, without changing standards ».
The High Council for Financial Stability (HCSF), which includes the Ministry of Economy and the Bank of France, decided on Tuesday to establish binding rules for granting mortgage credit. This is subject to penalties.
« As planned since December 2020, HCSF converts its Recommendation into a legally binding standard, without changing the standards. “, he emphasized in his decision. These rules consist of a maximum effort rate of 35%, a debt period of at most 27 years in certain cases, and the possibility of non-compliance with these criteria for 20% of loans.
resolution ” Thus consolidating good practices in granting mortgage loans over time and contributing to maintaining the housing finance model prevailing in France, allowing broad and controlled access to mortgage loans “,” defines HCSF.
The higher authority indicates that it has tasked the Precautionary and Reduction Control Authority (ACPR) with monitoring the proper implementation of this decision. This will be effective for credits disbursed effective January 1, 2022.
At Empruntis, we are pleased that HCSF leaves its standards unchanged, but the broker is expressing concerns about 20% of the degrading files. ” If your project requires a departure from these criteria, it may be best to either anticipate it or wait your turn for chances to take advantage of the 20% waivers. Estimates by Cecile Rockellor, Director of Studies and spokeswoman for Empruntis.