Central Bank Resolution CMN No. 4837 Amending Resolution No. 4676 on Real Estate Financing Conditions

The Central Bank of Brazil, in accordance with Article 9 of Law No. 4,595 of December 31, 1964, makes public that the National Monetary Council, in an extraordinary session held on July 20, 2020, based on Articles 4, items VI and IX, of the aforementioned Law, Articles 9-A to 9-D of Law No. 13,476 of August 28, 2017, and Article 95 of Law No. 13,097 of January 19, 2015,

R E S O L V E S:

Article 1. Resolution No. 4,676 of July 31, 2018, shall enter into force with the following alterations:

"Article 6. ......................................................

§ 1. The nominal value referred to in item I of the main text, comprising principal and ancillary expenses, may be up to 90% (ninety percent) of the property's appraised value, in the case of using the Constant Amortization System (SAC) or the Increasing Amortization System (Sacre).

§ 2. In the event that the same property serves as collateral for more than one credit operation, through the sharing of fiduciary alienation, the total nominal value of the guaranteed obligations, comprising principal and ancillary expenses, must observe the limit applicable to the original credit operation." (NR)

"Article 16. .....................................................

................................................................

Sole Paragraph. ..............................................

................................................................

III - value of the Tax on the Transfer of Real Estate 'Inter Vivos' (ITBI)." (NR)

"Article 17. .....................................................

................................................................

X - interbank real estate deposits guaranteed by the operations referred to in items I to V;

XI - real estate credit certificates and mortgage certificates acquired, representative of the operations referred to in items I to V; and

XII - loans guaranteed by fiduciary alienation of real estate, provided they share collateral with credit operations eligible for the purpose of meeting the exigibility requirement set forth in Article 15, observed the provisions of Article 20-A.

§ 1. The following ancillary expenses may compose the value of the operations referred to in items I, II, and XII of the main text:

I - notary costs incurred by the borrower related to the registration and annotation of the title or constitutive, declaratory, or translative act of real rights over the property;

II - costs of the information transmission service for electronic registration purposes, if contracted by the borrower, observing applicable regulations;

III - value of ITBI; and

IV - value of the Tax on Credit, Exchange, and Insurance Operations, or on Securities or Financial Assets (IOF).

§ 2. The loans referred to in item XII of the main text must observe the following conditions:

I - total value of new operations less than or equal to the outstanding balance of the original credit operation, on the date of contracting;

II - interest rates equal to or lower than that of the original credit operation; and

III - terms equal to or lower than the remaining term of the original credit operation, on the date of contracting.

§ 3. For the purposes of the provisions of § 2, the use of an amortization system and update criteria different from those originally contracted is permitted." (NR)

"Article 20-A. The total value of the credit operations referred to in Article 17, item XII, may not exceed 3% (three percent) of the calculation base referred to in Article 15, § 1.

§ 1. The percentage referred to in the main text shall be 10% (ten percent), for operations contracted until June 30, 2021.

§ 2. For the purposes of the provisions of § 1, the value of the operation whose maturity has undergone any form of extension relative to the originally contracted maturity is not admitted in the calculation." (NR)

"Article 22-A. New and autonomous credit operations contracted within the scope of the sharing of fiduciary alienation must observe:

I - interest rates equal to or lower than that of the original credit operation; and

II - terms equal to or lower than the remaining term of the original credit operation, on the date of contracting.

§ 1. The use of an amortization system and update criteria different from those originally contracted is permitted.

§ 2. Financial institutions and other institutions authorized to operate by the Central Bank of Brazil, prior to contracting the operations referred to in the main text, must inform the borrower, in an adequate and clear manner, regarding the eventual change in the condition of debt extinction, in view of the provisions of § 4 of Article 9-D of Law No. 13,476 of August 28, 2017.

§ 3. For the purposes of the provisions of § 2, financial institutions and other institutions authorized to operate by the Central Bank of Brazil must obtain from the borrower a formal manifestation of awareness regarding the change in the condition of debt extinction, through the signing of a specific term." (NR)

Article 2. The sole paragraph of Article 6 of Resolution No. 4,676 of 2018 is hereby revoked.

Article 3. This Resolution enters into force on the date of its publication.

Roberto de Oliveira Campos Neto
President of the Central Bank of Brazil