Posted on Dec. 2020 at 11:42Updated 14 Dec. 2020 at 18:25
It is a final blow of pressure before the meeting, Thursday, of the High council of financial stability (HCSF). Chaired by the Minister of Finance, this body must make a long-awaited analysis of the recommendations issued a year ago to curb the boom in mortgage lending.
On Monday, professional unions and associations of brokers, real estate agents and home builders sent Bercy, the Ministry of Housing and the Banque de France a letter to alert them to the rules enacted at the end of 2019 by the HCSF and according to them too restrictive. These rules, from their point of view, hamper the real estate market and could penalize its recovery as the health crisis has started to produce its effects.
The signatories – the Association of Professionals of Credit Intermediaries (Apic), at the origin of this initiative, the French Association of Rental Real Estate (Afil), the French Federation of Builders (FFC), the National Federation of real estate agents (Fnaim), and the National Union of Real Estate Professionals (SNPI) – note a slowdown in activity. With banks ” much more selective in the choice of fundable profiles », Indicates the courier.
” The Banque de France issues loan production figures at a moment t, and again recently welcomed record figures for October. But four to six months pass between the time an operation is launched and the time it is carried out. And we have fewer and fewer projects in our portfolio », Warns Philippe Taboret, Honorary President of Apic and Deputy Managing Director of the broker Cafpi.
For its part, the Banque de France has repeatedly assured that it has not observed a reduction in loan production. For its governor, François Villeroy de Galhau, who sits on the HCSF, recent figures deny ” the bad lawsuits on the plunge in access to real estate financing Formulated by the actors of the sector, he declared at the end of November.
More affected profiles
According to real estate brokers and professionals, first-time buyers and rental investors are the two profiles to suffer the most from the HCSF rules. Namely, a 25-year limit on the duration of loans and a limit of 33% of the borrower’s effort rate (the weight of loan repayment in relation to income). However, with a tolerance to exceed this 33% for 15% of the credits granted.
Philippe Taboret said he heard the arguments highlighting the increased risk of non-payment of certain individuals. But, he adds, “ brokers like bankers have a duty to advise. At the moment, we are encouraging our clients working in the tourism, hotel or restaurant industries, affected by the crisis, to postpone their project. “.
Rather than requesting outright removal of the recommendations – ” we would no longer have been credible », Confides a professional -, the actors of the sector propose adjustments to the HCSF. Starting with an increase from 15% to 30% in the rate of exemption from the 33% rule in the production of loans. It is necessary ” let the banks appreciate the risk “And allow them to grant” on a case by case basis more credits “, she says.
They also want for operations for which first-time buyers benefit from a zero rate loan (PTZ), the loan term can be extended beyond twenty-five years. Ditto for purchases in the new in order to take into account the period of two years minimum which can elapse between the reservation and the delivery of a housing. They will know on Thursday whether they have been heard.