Real estate loans soon hardened?

Banks are worried about new international standards that would force them to be more selective.

Will it be more difficult in the future to subscribe to a mortgage? The new recommendations made by the Basel Committee, a regulator of the global financial system, are worrying French bankers and real estate professionals. This body seeks to reduce the risks associated with loans, causing the subprime crisis in the United States. In December, it launched a new consultation to strengthen the equity that banks must have when granting credit to borrowers with little or no personal contribution. The reasons? In the majority of countries (especially Anglo-Saxon countries), the amount of home loans is calculated according to the value of the property purchased. A loan without personal contribution is, therefore, the price of housing. But if the borrower (or the bank in case of default) resells it at a loss, he cannot fully repay his loan. “It is, therefore, to limit this risk that the Basel Committee wants to impose a sharp increase in the capital reserves of financial institutions,” said Michel Mouillart, professor of economics at Paris-Ouest.

“Our system is healthy and works pretty well” Marie-Anne Barbat-Layani, Executive Director of the French Banking Federation (FBF)

The French system is very different from the Anglo-Saxon model. The amount of the loan is only calculated according to the capacity of repayment of the borrower: its debt ratio must at most represent 33% of its income. “Our system is healthy and works pretty well. The rate of these loans is less than 2%. It is, therefore, paradoxical to want to force us to change our rules, “says Marie-Anne Barbat-Layani, Executive Director of the French Banking Federation (FBF). The mortgage market is doing well. Last year, nearly 130 billion loans (excluding loan redemptions) were granted. And demand remains supported by lower and lower lending rates (2.09% on average in February).

A risk for young people and poor households

If it is adopted, the new standard will be transposed into European law in 2017 and will enter into force surely in 2018. French banks will then have to freeze up to 55% of the amount lent in their own funds, against 15 to 20% currently. Which could be fatal for some borrowers. “First-time buyers with modest incomes and young households will no longer be able to borrow with little or no input,” says Jean-François Buet, president of Fnaim. Which is far from being anecdotal. “About 150,000 of them may no longer have access to mortgage credit, calculates Michel Mouillart. This should also slow down the energy renovation of 100,000 old homes a year. But rental investors will be a little less affected because many of them will be able to increase their contribution. “This tightening will have an impact on the real estate market, especially the new one and on economic growth. “The market is likely to freeze as in 2009. This could lead to lower prices than today,” predicts Jean-Francois Buet. Worried, the Fnaim, the FPI (promoters) and the FFB (individual houses) have just alerted the public authorities on the subject.

Contrary to what has feared a few months ago, French banks should, however, be able to continue lending at a fixed rate. But maybe more in the same conditions. “The capital requirements to finance fixed-rate mortgages that banks have in the portfolio may increase significantly,” worries Marie-Anne Barbat-Layani. This could force them to raise credit rates or simply switch to variable rates, which we do not want. ”

In the long run, the credit market could dry up a bit. “If the set of regulatory tightening measures envisaged was to be confirmed (…), it is certain that banks should restrict their supply of real estate credit,” warns Bruno Deletré, Managing Director of Crédit Foncier. French banks are working with regulators to promote national interests.

A diplomatic flight to “Freedom” Delacroix will be exhibited in Tokyo.

On Wednesday, a mégatransporteur must leave Roissy with the symbol the French Republic in its hold. One of the biggest aircraft in the world, an Airbus “Beluga” was chartered to lead the Liberty Leading the People by Delacroix in Tokyo, where the table should be exposed for six weeks. It’s not a mystery: the Louvre officials have had the shock of their lives when they learned that Jacques Chirac had promised to lend this iconic painting at the National Museum of Japan, during his state visit to this country in November 1996. from Conservative memory, we had never seen this in any case for the loan of the Mona Lisa in Japan in 1974.

But the Japanese had taken France a masterpiece of Buddhist statuary, the Kudara Kannon, in the Louvre five weeks in the fall of 1997. Lionel Jospin himself intervened to the French honor the word careless presidential.

Recalcitrant Conservatives nevertheless observed that the painting was weakened by its size (2.6 x 3.5 meters). Hence the mobilization of the Airbus that will make travel upright in a vibration chamber, one of the security conditions imposed on transport. Ordinarily, this aircraft carries Airbus cabin parts!

Three Glorious. The composition of Delacroix has been a myth in the nineteenth century, long before adorn the 100-franc note. The artist painted it, not to mention the French Revolution, but the July Revolution of 1830. Presented at the Salon of 1831, the manifesto of Romanticism was a great impact on its dimensions and its subject, but also by its stylistic treatment. Louis Philippe bought 3000 francs for the Royal Museum of the Luxembourg Palace. But the government of Adolphe Thiers could not stand long this encouragement to the popular riot. The painting was returned to the artist and remained stored ten years in precarious conditions in one of her relatives, reappearing only in 1848. At the request of the artist, he then took the road of Luxembourg, which returned it to its reserves. This same absence would contribute to its status as a legendary work. The Parisian public was able to rediscover the Universal Exhibition of 1855. In 1874, he was finally transferred to the Louvre, where it has remained permanently exposed.

Hide it in “In another move, the Airbus” Beluga “was decorated with painted films representing Liberty. The round trip will cost a whopping five million francs (empty return is kindly not charged), not counting the 200 000 francs insurance. the insured value of the work of 450 million francs. He finally had to be solved at the last minute a final diplomatic incident, soothing Gulf authorities where the plane is supposed to stop (1): no way for them to see topless women on the fuselage the parade was found at the last minute: the breasts will be hidden But the Japanese are reassured Such modesty veils will be removed before.. landing in Tokyo.

(1) For security reasons, the exact stop is not disclosed.

Taking The Mystery The Actual Forex Currency Trading

Mortgage Brokers – Many loans made in the Ough.S. came from mortgage brokers. A mortgage loan officer is another kid that acts being a middle-person bringing borrowers and lenders alongside one another. Each of them works with various lenders, some with 200 or substantially. You should inquire about the different products made available since they may vary from every broker. Your choices depend on the associated with working relations of the broker. Fees can be paid by either you or the lender or both. These brokers might work regarding “up-front” throughout they negotiate a specific fee directly with buyers in exchange for in need of the lowest prices and interest premium.

These loans are offered by taking any of the assets of this borrower. This method of borrowing is because of secured loans. The asset pledged towards the lender acts as equity. But it has a risk involved. A borrower may face a risk of losing the asset vowed. To avoid such risks, he/she could go for bank loans. Most of the credit holders prefer this form of lending. Though it too has a certain cap. The rate of interest applicable on such loans is usually very elevated.

20. So what do you know by minimum balance? – When the complainant is maintaining current account and savings account, he should support minimum balance in the report. Minimal balance is prescribed coming from the respective classification of banks. When the amount falls underneath the minimum balance during any day, penal charges are levied your market account.

Hire a house law firm to slow up the risk working on the investment. The business can verify if perhaps the title deed is authentic or not & can identify the loopholes a sale legally binding contract. Obtain a written record regarding your ownership out of your sub-registrar’s office & go for a completion certificate belonging to the seller.

Savings and Loan Associations (S&L) – Also to be able to as a thrift, these are institutions committed to accepting deposits from clients into money/savings market accounts and making real estate loans. They not make commercial or business loans and only lend for home improvement, purchase, or construction purposes. Getting a mortgage here now is more comfortable than received it from types of banks pdf. The Department of Oughout.S. Treasury, Office of Thrift Supervision regulated a significant amount of these savings and loan associations.

There is often a lot to investigate, using so many foreclosure listings, many banks are open to negotiation. Securing to empty properties will set you back the bank definition money in upkeep while keeping them in sellable condition to attract buyers.

If your insurance suddenly goes bankrupt, which is most less likely. AIG, American Insurance Group, went bankrupt because AIG insurers mortgage provides. But AIG received $85 billion loan guarantee from authorities.

Down payment: When you borrow your home loan, make sure to make a better down payment. Borrowing money may seem to be simple but ways from a long-term dedication to training. It is best to keep your borrowings low by making a higher down payment.

Annual charges, if any: Some banks also charge yearly cost. These annual fees can range depending upon the credit limit of the card. Other banks do not charge any annual taxes. While credit card compare, checking for yearly prices can be very necessary avoid extra expenses.