The Shanghai Banking and Insurance Regulatory Bureau issued a document overnight requiring banks not to lend to individuals if housing is not capped.

To control the total amount of mortgages and reduce expectations for real estate speculation, Shanghai has ushered in another wave of policy increases.

On the evening of January 29, the Shanghai Banking and Insurance Regulatory Bureau issued the "Notice of the Shanghai Banking and Insurance Regulatory Bureau on Further Strengthening Personal Housing Credit Management" (hereinafter referred to as the "Notice") to continue to do a good job in personal housing Eight requirements are put forward for credit management-related work, including real estate loan concentration management, down payment fund source and solvency review, borrower qualification review and credit management, personal housing loan issuance management, credit fund purpose management, and real estate agency business cooperation management, risk investigation, etc.

It is worth mentioning that in terms of personal housing loan issuance and management, the "Notice" clearly will focus on supporting the loan needs of borrowers to purchase their first small and medium-sized self-occupied housing, and can only purchase the main structure of the house. Housing loans are issued to individuals with capped housing.

Screenshot of the official website of the Shanghai Banking and Insurance Regulatory Bureau?

New regulations may delay the progress of real estate companies' repayment

Lin Bo, general manager of CRIC Research Center, told "Every A reporter from Nikkei Shimbun analyzed that strict management of personal housing loan issuance, which is equivalent to the sales of quasi-existing houses, will slow down the turnover rate of residential projects in Shanghai. "The pre-sale system has not changed. Real estate companies can continue to sell off-plan properties, but the loans cannot be disbursed until the structure is capped. This will slow down the progress of real estate companies' sales collection."

It is reported that Shanghai is currently pre-sale Among the standards, multi-storey residences require the main structure to be capped, while high-rise residences require the basic structure to be formed.

Zhang Bo, director of the branch of 58 Anjuke Real Estate Research Institute, told reporters that the policy requires that all new houses, even if they meet pre-sale standards, must have their main structure capped before loans can be issued, which significantly raises the threshold for mortgage loans and will It directly slows down the listing pace and sales speed of many new housing projects. For developers who intend to accelerate the withdrawal of funds from sales, especially developers who are concerned about sales, this policy will undoubtedly reduce the inflow of a large amount of pre-sale funds.

Generally speaking, the pre-sale funds of real estate companies have a great impact on their own cash flow. The reduction of pre-sale funds may not only slow down the overall development speed, but also increase the difficulty of reducing debt. Zhang Bo predicts that in the first quarter of this year, Shanghai’s commercial housing sales may slow down to a certain extent. This policy is also a reflection of the centralized management of real estate loans, highlighting the strengthening of prudent management of personal housing loans, strengthening the requirements for commercial banks, achieving strict control over the pace and growth of personal housing loans, and preventing surprise lending. Policies that focus on supporting the first small and medium-sized apartments reflect the protection of the needs of Shanghai's new citizens for purchasing their first homes.

Lin Bo said that now sales adopt a lottery system, and real estate companies cannot choose customers themselves, so they can only sacrifice their own progress in repayment. In the past, when Shanghai's property market was booming, some developers had already achieved the speed of collecting money immediately upon opening. Now this policy may delay the developer's repayment speed and greatly reduce the turnover efficiency.

A general marketing manager of a real estate company told reporters that this is due to the increase in funds. The result is that the supply of the property market is less, which is equivalent to a low return rate for developing real estate in Shanghai.

He gave an example. Originally, a piece of land could be opened for sale in 10 months, and a bank loan could be disbursed after 2 months. In the future, it will take 3 months before the loan can be disbursed. The regulation that “housing loans can only be issued to individuals who purchase houses whose main structure has been capped” will directly cause (taking an 18-story house as an example) developers to delay mortgage payments by 3 to 6 months.

Strictly review the source of down payment funds and solvency.

The "Notice" requires a strict review of the source of down payment funds and solvency. In accordance with the "know your customer principle", improve investigation and review methods; strengthen the authenticity review requirements for down payment funds to prevent borrowers from illegally obtaining personal housing loan down payment funds through consumer loans, operating loans and other channels, or by forging down payments Obtain bank loans through payment vouchers; carefully assess the borrower's willingness and ability to repay, strictly control the ratio of the borrower's monthly housing loan expenditure to income, and the ratio of all monthly debt expenditures to income, and verify the borrower's true income through multiple channels level to prevent false increases in solvency through false statements, false certificates and other fraudulent activities.

In this regard, Zhang Bo said that the policy clearly points to guiding commercial banks to strengthen loan review management and strengthen verification of the source of down payment funds and debt-to-income ratio of home buyers. Obtaining funds to buy a house through business loans and consumer loans is indeed worth paying attention to. This method will not only lower the threshold for home purchase in disguise, but also increase real estate financial risks. On the other hand, funds that really need to flow into small and medium-sized enterprises will flow into the property market in disguise, which is no longer the case. Conducive to the development of the real economy.

At the same time, the "Notice" requires strict strengthening of borrower qualification review and credit management, especially the review of the loan restriction qualifications of divorced borrowers, to prevent borrowers from circumventing purchase restrictions, loan restrictions and other behaviors to commercial banks for real estate credit The impact of risk management; make full use of various credit reporting and information sharing platforms to query borrower credit information, and strictly review and approve personal housing loans based on the borrower's credit status; applications for illegal acquisition of down payment funds, fraud, etc. For personal housing loans, their housing loan applications should be rejected, blacklisted, and reported to the Shanghai Public Security Information Service Platform as information on untrustworthy behavior.

Zhang Bo said that in conjunction with the policy on January 21 this year, Shanghai has stepped up its crackdown on fake divorce home purchases from a financial perspective. By strengthening the approval of personal housing loans, we can combat the signs of real estate speculation from the source, block irrational house purchase behavior, and effectively avoid real estate financial risks in advance. It is worth noting that the disciplinary signal of the blacklist system is clear, releasing to the society a clear crackdown on illegal applications for mortgage loans, and at the same time, it also plays a side role in stabilizing housing prices.

The "Notice" also requires that real estate intermediary cooperation qualifications be strictly reviewed, business cooperation access and list management be implemented, and post-loan quality monitoring and intermediary withdrawal mechanisms be established. Real estate agencies that are found to have violated regulations such as providing down payment support for home buyers, or cooperating with "packaging companies" to assist in forging loan qualification certificates and income certificates, should immediately terminate cooperation, blacklist them, and report to the Shanghai Bankers Association .

“This policy directly refers to intermediaries providing 'bridging funds' to home buyers in violation of regulations, and illegally helping home buyers obtain false certification information, and thus obtain the qualification to purchase a home or obtain a disguised reduction in the threshold for home purchase. "Zhang Bo said that the blacklist will have a deterrent effect on the intermediary industry, purify the industry atmosphere, and promote the healthy development of the real estate market.