Strongly encouraged by the Banque de France and Bercy, French banks will set up a system for “reviewing” refused real estate loan applications, their professional federation announced on Wednesday, in a context of real estate crisis.
We are setting up a new temporary support system intended for clients who have experienced difficulties in realizing their real estate projects, commented Nicolas Namias, president of the French Banking Federation (FBF), and also chairman of the BPCE management board, in a press release. The objective is that they understand the reasons for their bank’s decision and, if the conditions are met, benefit from a review of their credit reporthe continued.
At the request of customers
This second examination of unapproved real estate loans will be carried out customer demand. It will concern both primary and secondary residence or rental investment financing files.
This system will be implemented by the banks gradually current February 2024and will apply until end of December 2024, specifies the FBF. Loan applicants registered in the payment incident files managed by the Banque de France (FICP, FCC) will be excluded. Each banking establishment determines the methods of organization and information for its customers, adds the federation.
Restart the machine
The idea of this recourse was launched on November 17 by the governor of the Banque de France Franois Villeroy de Galhau on the occasion of the annual conference of the Prudential Control and Resolution Authority (ACPR). The Minister of the Economy Bruno Le Maire followed suit two weeks later, as did the High Council for Financial Stability (HCSF) at the beginning of December.
The public authorities are seeking restart the real estate credit machineseized by the sudden increase in key rates from the European Central Bank (ECB), immediately passed on in their rates by the banks attentive to their margins.
Many loan candidates logically preferred postpone their purchasing project, hoping to make up a little on a selling price which is still struggling to fall. The monthly production of new housing loans – excluding renegotiations – is expected at 8.6 billion in December by the Banque de France, a low point since January 2015.
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