Regulatory Alerts2021-12-16
Added · Updated
Regulations Governing the Extension of Mortgage Loans by Financial Institutions
The Regulations define mortgage loan categories and impose specific lending restrictions on financial institutions. Housing loans to corporations are capped at 40 percent of the property value with no grace period, while natural persons with existing loans face similar caps for new loans in specific areas. Land loans are limited to 50 percent of acquisition cost or appraised value, and unsold housing unit and idle industrial land loans are capped at 40 percent. The rules became effective on December 17, 2021, applying to loans processed after that date.
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