Reported about 1 year ago
In response to concerns that the New Youth Security Act has fueled a surge in property prices by attracting first-time home buyers to the market, the eight major banks supervised by the Ministry of Finance met to discuss measures to address fronting cases and unauthorized subletting. They reached consensus on three approaches regarding pre-loan screening, post-loan management, and inspections. New loan applicants must sign a solemn declaration, while existing customers may face penalties if violations are discovered during post-loan management. Oversight includes checking property ownership records, confirming real estate prices, and implementing self-occupancy declarations for new borrowers. The meeting emphasized increased vigilance towards suspicious transactions brought by intermediaries and individuals making multiple mortgage payments. These measures aim to curb speculative investment and prevent fronting schemes.
Source: YAHOO