CMN Resolution No. 4676 — Regulates the Brazilian Savings and Loan System (SBPE), the Housing Finance System (SFH), and the Real Estate Financing System (SFI), general conditions for real estate financing, and the allocation of savings deposit resources

The Central Bank of Brazil, pursuant to Article 9 of Law No. 4,595 of December 31, 1964, makes public that the National Monetary Council, in a session held on July 31, 2018, based on Articles 4, items VI and VIII, of the aforementioned Law, Article 8, item XII, of Law No. 4,380 of August 21, 1964, Article 7 of Decree-Law No. 2,291 of November 21, 1986, Article 2 of Law No. 9,514 of November 20, 1997, Article 10, sole paragraph, of Law No. 10,150 of December 21, 2000, Article 79, § 2, of Law No. 11,977 of July 7, 2009, and Article 95 of Law No. 13,097 of January 19, 2015,

R E S O L V E S:

CHAPTER I

OF THE OBJECT AND SCOPE OF APPLICATION

Art. 1 This Resolution establishes the components of the Brazilian Savings and Loan System, the Housing Finance System, and the Real Estate Financing System, the general conditions and criteria for contracting real estate financing by financial institutions and other institutions authorized to operate by the Central Bank of Brazil, and regulates the allocation of resources captured in savings deposits.

CHAPTER II

OF THE REAL ESTATE FINANCING SYSTEMS

Art. 2 The Brazilian Savings and Loan System (SBPE) aims to promote real estate financing in general, through the capture and allocation of resources from savings deposits.

Sole paragraph. The SBPE comprises multiple banks with real estate credit portfolios, savings banks, real estate credit societies, and savings and loan associations.

Art. 3 The Housing Finance System (SFH), governed by Law No. 4,380 of August 21, 1964, is intended to facilitate and promote the construction and acquisition of a primary residence or housing, especially for lower-income population groups.

Sole paragraph. The SFH comprises, as financial agents, in addition to the entities provided for in Article 8 of Law No. 4,380 of 1964, other financial institutions authorized to operate by the Central Bank of Brazil and closed complementary pension entities.

Art. 4 The Real Estate Financing System (SFI), governed by Law No. 9,514 of November 20, 1997, aims to promote real estate financing in general, under conditions compatible with the respective funds.

Sole paragraph. In addition to the entities provided for in Article 2 of Law No. 9,514 of 1997, other financial institutions authorized to operate by the Central Bank of Brazil may operate in the SFI.

CHAPTER III

OF REAL ESTATE FINANCING

Section I

Of the General Conditions of Operations

Art. 5 Real estate financing operations may be freely agreed upon by the parties, observing the following essential conditions:

I - full replacement of the lent value and respective adjustment;

II - remuneration of the lent capital at the rates agreed upon in the contract;

III - capitalization of interest; and

IV - contracting, by the debtors, the insurance coverage established by current legislation.

§ 1 Contracts for real estate financing operations may include a clause for updating the outstanding balance based on a publicly known and regularly calculated price index, or by the basic remuneration applicable to savings deposits.

§ 2 Adjustment by price index may be performed monthly, provided that the term of the operation is not less than 36 months.

Art. 6 The ratio between the nominal value of the real estate financing operation, including principal and ancillary expenses, and the appraised value of the property given as collateral, on the date of contracting, may not exceed:

I - 80% (eighty percent), in operations of:

a) financing for the acquisition of residential property;

b) financing to natural persons for the construction of residential property; and

II - 60% (sixty percent), in loan operations to natural persons secured by residential properties (home equity).

Sole paragraph. The nominal value referred to in item I of the caput, including principal and ancillary expenses, may be up to 90% (ninety percent) of the appraised value of the property, in the case of using the Constant Amortization System (SAC) or the Increasing Amortization System (SACRE).

Art. 7 The real estate financing operations governed by this Resolution intended for the acquisition, construction, or production of properties must be secured by:

I - fiduciary alienation of the property subject to the operation;

II - fiduciary alienation of another property of the borrower or of a third-party property;

III - mortgage, in first degree, of the property subject to the operation;

IV - mortgage, in first degree, of another property of the borrower or of a third-party property;

V - fiduciary assignment of credit rights arising from contracts for the alienation of properties; or

VI - pledge of credit or acquisition rights arising from contracts for the sale or promise of sale of properties.

§ 1 The contracting of additional guarantees is permitted, at the discretion of the financial agent.

§ 2 The loan operations referred to in Article 6, item II, must be secured by fiduciary alienation or mortgage, in first degree, of the property subject to the operation.

Art. 8 In contracting the real estate financing operations governed by this Resolution, the charging of fees related to the provision of services by financial institutions and other institutions authorized to operate by the Central Bank of Brazil must comply with current regulations.

Art. 9 The release of resources related to real estate financing granted may only be carried out after the constitution of guarantees.

Art. 10 The charging of charges for delay in payment of obligations related to real estate financing must observe the provisions of current regulations.

Sole paragraph. Installments of real estate financing paid late must be updated pro rata die based on the adjustment index agreed upon in the contract, from the due date.

Section II

Of the Granting Criteria

Art. 11 Financial institutions and other institutions authorized to operate by the Central Bank of Brazil, in contracting real estate financing or loans, secured by residential properties, with natural persons, must observe, at a minimum, the following criteria:

I - regarding the analysis of the sufficiency of guarantees:

a) the establishment of the financing quota must consider loans and financings previously contracted by the credit applicant in the National Financial System; and

b) the property appraisal must be performed by a professional with no affiliation whatsoever with the credit area of the proposing institution or with other areas that could imply a conflict of interest or constitute a deficiency in the segregation of functions; and

II - regarding the analysis of the credit applicant's payment capacity:

a) the assessment must consider the commitment of income with other financial obligations previously assumed by the credit applicant, as well as the expenses necessary to meet their minimum existential needs; and

b) the calculation of income commitment must be performed based on the highest monthly charge contractually permitted.

§ 1 Procedures related to the establishment of the financing quota and the assessment of income commitment must consider information existing in the granting institution itself, in the Credit Information System (SCR), in registration systems, and in databases with compliance information.

§ 2 The information used in the assessment and granting of credit must remain available to the Central Bank of Brazil during the validity of the operation, preferably in electronic format.

§ 3 For the purposes of item II of the caput, the analysis of payment capacity must be supported by documents that demonstrate or allow estimating the declared expenses and revenues, covering a time period that allows for the identification of non-recurring or extraordinary events.

Section III

Of Operations within the SFH

Art. 12 Operations within the SFH are the financings referred to in items I to V of the caput of Article 16, contracted by the institutions referred to in Article 3, which observe the granting criteria and the general and specific conditions established in this Chapter and in current legislation.

Art. 13 Operations within the SFH must observe the following specific conditions:

I - maximum limit of the appraised value of the financed property of R$1,500,000.00 (one million and five hundred thousand reais);

II - maximum effective cost for the borrower, including interest, commissions, and other financial charges, of 12% p.a. (twelve percent per annum); and

III - update of the outstanding balance, if provided for in the contract, by the basic remuneration applicable to savings deposits.

§ 1 In financings for the production of residential properties, the average value per unit produced must be equal to or lower than the limit established in item I of the caput.

§ 2 For the purposes of calculating the maximum effective cost referred to in item II of the caput, the following are not included:

I - the cost of contracting insurance policies for death and permanent disability, physical damage to the property, and civil liability of the builder; and

II - the value of the fees referred to in Article 14.

§ 3 In the case of new residential properties whose acquisition was contracted by the credit applicant during the production phase, the classification of real estate financing operations within the limit established in item I of the caput must take into account the value of the property on the date of signing the definitive contract or promise of sale and purchase.

§ 4 For the purposes of § 3, the use of the property value established in the definitive contract or promise of sale and purchase is admitted, in the absence of a valid appraisal report on the date of signing the contract.

§ 5 A new residential property is considered to be a housing unit that:

I - is in the production phase; or

II - has up to 180 days of "occupancy permit" (habite-se), or equivalent document, issued by a competent public authority, or, in cases of a longer period, if it has not been inhabited or alienated.

Art. 14 Operations within the SFH may include the following fees for the provision of special services to natural persons:

I - fee for the analysis of the proposal for an individual housing insurance policy as referred to in Resolution No. 3,811 of November 19, 2009; and

II - monthly contract administration fee, limited to R$25.00 (twenty-five reais).

CHAPTER IV

OF THE ALLOCATION OF RESOURCES CAPTURED IN SAVINGS DEPOSITS

Section I

Of the Requirement for Application

Art. 15 Resources captured in savings deposits by entities integrated into the SBPE must be applied according to the following percentages:

I - 65% (sixty-five percent), at a minimum, in real estate financing operations, of which:

a) 80% (eighty percent), at a minimum, in operations referred to in Article 16; and

b) the remainder in operations referred to in Article 17;

II - 20% (twenty percent) in mandatory reserve at the Central Bank of Brazil, in accordance with current regulations; and

III - the remaining resources in financial availability and in other operations admitted under the terms of legislation and current regulations.

§ 1 The requirement for application in real estate financing mentioned in item I of the caput is based on the calculation of the lower of the following values, using the business day criterion:

I - the arithmetic mean of the daily balances of savings deposits in the 36 months preceding the reference month; or

II - the arithmetic mean of the daily balances of savings deposits in the reference month.

§ 2 For institutions integrated into the SBPE in the beginning of their activity, while 36 months of savings deposit capture have not been completed, the arithmetic mean referred to in § 1, item I, must consider the number of months elapsed since the beginning of capture.

Section II

Of Eligible Operations

Art. 16 For the purposes of meeting the requirement established in Article 15, item I, item "a", the following operations may be counted:

I - financings for the acquisition of new, used, or under-construction residential properties;

II - financings to natural persons for the construction of residential property, which may include the acquisition of the land;

III - financings for the renovation or expansion of residential properties;

IV - financings for the production of residential properties;

V - financings for the acquisition of materials for the construction, expansion, or renovation of a residential property on a lot owned by the credit applicant or whose regular possession is held by them;

VI - the value of scheduled disbursements for release until the end of financing contracts for construction and production referred to in items II and IV, observing the provisions of Article 18;

VII - the value of properties received in the liquidation of residential real estate financings, while not alienated;

VIII - interbank real estate deposits secured by the operations referred to in items I to V;

IX - real estate credit certificates and mortgage certificates acquired, representing the operations referred to in items I to V;

X - credits against the Wage Variation Compensation Fund (FCVS); and

XI - credits corresponding to the novated debts of the FCVS, in accordance with Article 10 of Law No. 10,150 of December 21, 2000.

Sole paragraph. The following ancillary expenses may compose the value of the operations referred to in items I and II of the caput:

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 norms; and

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

Art. 17 For the purposes of meeting the requirement established in Article 15, item I, the following operations may be counted:

I - financings for the acquisition of new, used, or under-construction non-residential properties;

II - financings for the construction of non-residential property;

III - financings for the renovation or expansion of new or used non-residential properties;

IV - financings for the production of non-residential properties;

V - financings for the acquisition of materials for the construction, renovation, or expansion of non-residential properties;

VI - the value of scheduled disbursements for release until the end of financing contracts for construction and production referred to in items II and IV, observing the provisions of Article 18;

VII - the value of properties received in the liquidation of non-residential real estate financings, while not alienated;

VIII - financings to investment projects of private concessionaires in the sanitation sector;

IX - financings for infrastructure works in urban subdivisions;

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

XI - real estate credit certificates and mortgage certificates acquired, representing the operations referred to in items I to V.

Art. 18 The resources corresponding to the values of the disbursements referred to in Article 16, item VI, and Article 17, item VI, must be represented by titles issued by the National Treasury belonging to the institution's own portfolio, which will remain unavailable in a specific account in the Special Settlement and Custody System (Selic), while counted for the purposes of meeting the requirement established in Article 15, item I.

Sole paragraph. For the purposes of the caput, titles issued by the National Treasury will be considered at their respective backing prices admitted by the Central Bank of Brazil in intraday repurchase operations.

Section III

Of the Computation and Adjustments

Art. 19 For the purposes of meeting the requirement established in Article 15, item I, the operations referred to in Articles 16 and 17 must be counted by their respective gross book value, calculated according to the criteria established in the Accounting Plan of the Institutions of the National Financial System (Cosif), without deduction of loss provisions, nor addition of installments to be released.

§ 1 Interbank real estate deposits referred to in Article 16, item VIII, and Article 17, item X, must be counted by the arithmetic mean of the daily balances held in portfolio in the reference month, using the business day criterion and the same rules for calculating their values for accounting in Cosif.

§ 2 Real estate credit certificates and mortgage certificates acquired are counted, in the month of their acquisition, in accordance with § 1.

§ 3 The values of credits written off against losses related to the operations referred to in the caput may remain counted for the purposes of meeting the requirement referred to in Article 15, item I, while the respective judicial or extrajudicial enforcement processes are not concluded, for a maximum period of five years, counted from the date of the write-off.

§ 4 For the purposes of § 3, the value of the credit written off against losses corresponds to the gross book value calculated in the manner of the caput, on the date immediately preceding the write-off, without deduction of loss provisions.

§ 5 The operation counted in accordance with § 4, if it is the subject of renegotiation or restructuring that implies its substitution by a new operation, cannot be counted for the purposes of meeting the requirement referred to in Article 15, item I.

§ 6 The following credit balances must be deducted from the values counted in accordance with this article:

I - of transfer and refinancing operations, including those carried out with resources from funds and social programs;

II - of interbank real estate deposits captured and of mortgage letters and real estate credit letters issued with backing in the real estate financings referred to in Articles 16 and 17; and

III - of real estate letters guaranteed issued with a maturity of less than three years and guaranteed by the real estate financings referred to in Articles 16 and 17.

Art. 20 Institutions integrated into the SBPE may apply, for the purpose of meeting the requirement established in Article 15, item I, a multiplication factor of 1.2 (one and two tenths) to the balances of real estate financings contracted from the entry into force of this Resolution:

I - whose appraised or negotiated value, whichever is higher, of the property subject to the financing contract for acquisition or construction, referred to in Article 16, items I and II, does not exceed R$500,000.00 (five hundred thousand reais);

II - whose average appraised or negotiated value, whichever is higher, of the residential units of the development subject to the financing contract for production, referred to in Article 16, item IV, does not exceed R$500,000.00 (five hundred thousand reais).

Section IV

Of Unapplied Resources

Art. 21 Resources not applied in accordance with the provisions of Article 15, item I, must be deposited with the Central Bank of Brazil, in current currency, on the fifteenth day of the month following the reference month or on the next business day if the fifteenth is a non-business day, remaining unavailable until the fifteenth day of the month following the deposit or until the next business day if the fifteenth is a non-business day.

§ 1 The balance to be deposited in each monthly assessment corresponds to the difference between the percentage of requirement established in Article 15, item I, and the higher of the following values, calculated with respect to the respective calculation base:

I - arithmetic mean of the application percentages verified in the twelve months preceding the reference month; or

II - application percentage verified in the reference month.

§ 2 The deposited balance will be updated monthly by an index corresponding to 80% (eighty percent) of the yield of savings deposits.

§ 3 In the event of a shortfall in the deposit being identified, the financial institution will incur the payment of financial costs equivalent to those determined for mandatory reserve deficiencies.

CHAPTER V

GENERAL PROVISIONS

Art. 22 Financial institutions and other institutions authorized to operate by the Central Bank of Brazil, in financing operations for the acquisition of property, must apply to the value to be transferred to the seller remuneration equivalent to that of savings deposits.

§ 1 The remuneration referred to in the caput must be calculated pro rata temporis, based on the period between the date of signing the financing contract and the date of transfer of the resources.

§ 2 The value referred to in the caput must be maintained until the date of transfer of the resources in a control account of the institution itself, in the name of the seller.

CHAPTER VI

TRANSITIONAL PROVISIONS

Art. 23 The difference between the balances of real estate financings counted in the reference month immediately preceding the date of entry into force of this Resolution and their respective book values, calculated in accordance with Article 19, may remain counted, for the purposes of meeting the requirement referred to in Article 15, item I, as follows:

I - in its entirety, in the position relative to January 2019; and

II - by the value referred to in item I, deducted by 1/72 (one seventy-second) for each subsequent monthly position.

Sole paragraph. The provisions of the caput apply to credits written off against losses, counted for the purposes of meeting the requirement in the reference month immediately preceding the date of entry into force of this Resolution.

Art. 24 Balances counted on July 31, 2018, related to real estate receivable certificates referred to in Article 2, item IX, and Article 3, item XVI, to real estate credit letters and mortgage letters referred to in Article 2, item VIII, and Article 3, item VII, of the Regulation annexed to Resolution No. 3,932 of December 16, 2010, may remain counted until their respective maturities for the purposes of meeting the requirement established in Article 15, item I.

Sole paragraph. For the purposes of the caput, no form of extension of the maturity of the titles is admitted.

Art. 25 Balances counted with the application of the multipliers referred to in Articles 10 and 11 of the Regulation annexed to Resolution No. 3,932 of 2010, in the reference month immediately preceding the date of entry into force of this Resolution, may remain counted until the liquidation of the respective operations for the purposes of meeting the requirement established in Article 15, item I.

CHAPTER VII

FINAL PROVISIONS

Art. 26 The Central Bank of Brazil is authorized to adopt the measures necessary for the execution of the provisions of this Resolution.

Art. 27 Are repealed:

I - Articles 1 and 2 of the Regulation annexed to Resolution No. 1,980 of April 30, 1993;

II - Article 31 of the Regulation annexed to Resolution No. 1,980 of 1993;

III - Article 58 of the Regulation annexed to Resolution No. 1,980, of 1993;

IV - Resolution No. 3,157, of December 17, 2003;

V - Resolution No. 3,409, of September 27, 2006;

VI - Resolution No. 3,706, of March 27, 2009;

VII - Resolution No. 3,932, of 2010;

VIII - Resolution No. 4,271, of September 30, 2013;

IX - Articles 1 to 3 of Resolution No. 4,410, of May 28, 2015;

X - Resolution No. 4,464, of February 11, 2016;

XI - Resolution No. 4,493, of May 31, 2016;

XII - Resolution No. 4,526, of September 29, 2016;

XIII - Resolution No. 4,537, of November 24, 2016;

XIV - Resolution No. 4,550, of January 26, 2017;

XV - Resolution No. 4,555, of February 16, 2017;

XVI - Resolution No. 4,572, of May 26, 2017; and

XVII - Article 2 of Resolution No. 4,650, of March 28, 2018.

Article 28. This Resolution enters into force on January 1, 2019.

Ilan Goldfajn
President of the Central Bank of Brazil