Resolution CMN No. 1310 - Housing Finance System - Used Real Estate - More Than 180 Days of Occupancy Permit - Maximum Financing Value and Term

RESOLUTION NO. 001310

THE CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4,595, of December 31, 1964, makes public that the President of the NATIONAL MONETARY COUNCIL, by act dated April 24, 1987, based on Article 1, Paragraph 2, of Decree No. 83,323, of April 11, 1979, with the wording given by Article 1 of Decree No. 85,776, of February 26, 1981, "ad referendum" of that Council, having regard to the provisions of Article 7 of Decree-Law No. 2,291, of November 21, 1986,

RESOLVED:

I - To establish that the granting of financing for the sale of real estate to final borrowers, under the conditions established for the Housing Finance System (SFH), may cover residential units with the following characteristics:

a) with up to 180 (one hundred and eighty) days of "habite-se" (occupancy permit);

b) with more than 180 (one hundred and eighty) days of "habite-se", which have not been subject to occupation or negotiation;

c) used real estate.

II - The financing for the acquisition of used real estate shall be limited to an amount equivalent to 25% (twenty-five percent) of the resources that the financial agent must obligatorily allocate to applications of the Housing Finance System (SFH).

III - In the alienation of financed real estate under the conditions of the Housing Finance System (SFH), agents may classify the contract entered into with the new borrower within the said System, as will be regulated by the Central Bank.

IV - The Central Bank is authorized to adopt the necessary measures for the execution of the provisions of this Resolution and to regulate SFH financing operations, including regarding the following aspects:

a) maximum value per residential unit;

b) maximum financing term;

c) maximum commitment of gross family income;

d) amortization regime employed.

V - This Resolution shall enter into force on the date of its publication.

Brasília-DF, April 24, 1987

Francisco Roberto André Gros
President