The governor of the Banque de France François Villeroy de Galhau estimated on Friday that “calling into question the HCSF”, a body responsible for deciding among other things the rules for granting real estate credit, or “its criteria”, “is not in nothing the subject”.
The High Financial Stability Council (HCSF), responsible for financial stability as a whole, has set over the years a set of rules on real estate credit with the aim of limiting household over-indebtedness.
The main principles are as follows: banks do not have the right to sign a real estate loan if the total amount of borrowers’ housing-related expenses exceeds 35% of their income (effort rate), nor for a longer period. 25 years, unless work represents 10% of the total amount of the operation.
These terminals can be bypassed in 20% of cases, provided that this primarily concerns main residences and targets, in almost a third of cases, first-time buyers.
We had put in place common sense criteria to avoid household over-indebtedness, so that people who take on a real estate project are sure of being able to repay it. We relaxed them a little last year and this is what we call the HCSF criteria, the governor declared Friday evening on Europe 1.
I say this because they have sometimes been criticized, including in the recent period. I believe that this is really no longer the subject because there is flexibility of up to 20% to deviate from these criteria. It is only partially used, 15% of it is used, he continued.
I sometimes hear that we should question the HCSF or these criteria. This is really selling illusions because this is in no way the subject, estimated Mr. Villeroy de Galhau.
Enjoy the sharp drop in rates to realize your project!
This position of the governor goes against Bercy, who spoke out in favor of a bill proposed among others by the majority deputy Lionel Causse.
This first aims to modify the composition of the High Council for Financial Stability, in order to include a deputy and a senator, we can read on the website of the National Assembly.
She then attacks the rate of effort, preferring the notion of remaining alive.
The members of the HCSF, who meet every quarter, have still not announced the date of their next meeting, the first in 2024. It took place last year on March 7.
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