Banks Making Hay While Sun Shines, Furiously Processing Mortgage Applications

Banks are speeding up the processing of mortgage applications as monetary emissions flow into housing. Banks had slowed the lending process amid falling home prices and rising credit risk in 2014 and 2015, but now it takes 2 to 3 days to apply and 10 days to receive funds.
"The average of 2 to 3 days to complete approval, 10 days can lend." A listed bank's Qingdao branch employee told the "Daily News" reporter, real estate market is very hot, personal loans also extraordinarily active.
Credit standards are obviously being loosened, even as banks require lower down payments (20%) and offer discounts of 15-18% off the benchmark rate.
In February, the central bank and the China Banking Regulatory Commission issued a notice once again, without the implementation of the "restriction" measures the city, households first purchase commercial individual housing loans ordinary housing, the minimum down payment ratio of 25% in principle, can float down around 5 percentage points.

After the mortgage New Deal, a number of banks to respond positively. Such as ICBC official said, the bank does not implement the "restriction" city households for the first time to buy ordinary housing, commercial individual housing loans, the minimum down payment ratio of 25% in principle, all branches floating down 5 according to local conditions percentage points; to have a set of houses and a corresponding purchase loans outstanding of households, in order to improve living conditions apply for commercial individual housing loans again to purchase ordinary housing, the minimum down payment ratio of not less than 30%.

"The first suite down to the lowest possible into two, each row there will be some conditions, such as open mobile banking or online banking." The stock line sources said.

It is understood that in the Beijing area, the implementation of the optimal number of banks for the first home interest rate 15% off the benchmark rate, individual banks subject to certain conditions lower it to 18% off.
No worries though, because even though credit risks are rising and banks are cutting off credit to business, the risk on mortgages and personal loans is lower:
Asset quality of commercial banks in the downlink period, the personal loans although limited gains, but lower risk, favored also normal. A Beijing branch of a listed bank said that the current line in personal loans to credit arrangements are more abundant, the current uncertain economic situation, a number of small and micro business customers credit has tightened, personal business focus on mortgages and consumers.

Late last year due to strong sales of real estate, mortgage demand has soared.

"The beginning of a more relaxed bank credit, and real estate sales are also booming, personal loans may be the size will continue to rise for some time." The stock line of Beijing Branch sources said, which is consistent with the direction of regulators encouraged.
This will work unless there's an actual recession underway, in which case the recession will spread to services and finally show up in income, and then the consumer loans blow up too.

Evidence already points to trouble: China Unbalancing As Recession Hits Services; Industrial Support Courts Disaster

and also: China Growth Industry: Bad Debt Collection and Management

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