Regulatory Alerts2004-10-19
Added · Updated
HKMA Circular on Residential Mortgage Lending Compliance
The Hong Kong Monetary Authority issued this circular to outline findings from on-site examinations of authorized institutions regarding their residential mortgage lending practices. The regulator mandates strict adherence to the 70% loan-to-value guideline, requiring that unsecured personal loans and top-up loans not cause total exposure to exceed this limit. Additionally, institutions must enforce debt servicing ratio tests between 50-60%, utilize consumer credit data for repayment assessments, and implement robust risk controls for equitable mortgages to mitigate developer default and fund misappropriation risks.
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