Regulatory Alerts2026-03-19
Added · Updated
Regulations Governing the Extension of Mortgage Loans by Financial Institutions
The Regulations establish loan-to-value caps and restrictions for mortgage loans extended by financial institutions, including domestic banks, credit cooperatives, and insurance companies. Housing loans to corporations and high-value housing loans to natural persons are capped at 30 percent of the appraised value or purchase price, while home loans for individuals with one existing loan are limited to 60 percent. Land loans are restricted to 50 percent of the acquisition cost or appraised value, unsold housing unit loans to 30 percent, and idle industrial land mortgage loans to 40 percent, with specific exemptions for construction-started projects. The amendments take effect on March 20, 2026, applying prevailing provisions to loans processed before that date unless the new rules are more favorable to the borrower.
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