Regulatory Alerts2017-08-11
Added · Updated
Proposed Amendments to Regulations on Supervision of Banking, Insurance, Mutual Financial, Mutual Savings Bank, and Specialized Credit Finance Businesses
The Financial Services Commission proposes reducing the loan-to-value (LTV) and debt-to-income (DTI) ratios for new mortgage loans to 40%, unless otherwise specified by law. These ratios may be increased by 10 percentage points for low-income and genuine potential home buyers, or decreased by 10 percentage points for multiple mortgage loan borrowers. Additionally, the criteria for enhanced restrictions on new mortgage lending and maturity extension in speculation-designated areas are changed from the individual borrower to the individual household. The public comment period for these proposed amendments ends on August 7, 2017.