“Housing and living without speculation” practical tricks landed

Financial regulatory authorities in many places have made precise controls on housing-related funds to strictly prevent consumption loans and business loans from flowing into the property market in violation of regulations. The reporter of “Economic Information Daily” learned from authoritative channels that Shenzhen’s relevant financial regulatory authorities recently convened a meeting with a number of commercial banks to request banks to investigate the inflow of operating loans into the real estate market. The content of this investigation includes inclusive loans of less than 10 million yuan issued after May 1, 2020, as well as housing loan business loans (unlimited amount) applied in the name of individuals.

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With the upgrading of real estate financial supervision, the control of bank loan flows has also become stricter. Many banks expressed that they will strengthen the control of the entire process of credit business, and will immediately recover their loans once they find that funds have flowed into the real estate market. Industry insiders said that certain organizations or individuals in society claim to be able to withdraw bank loan funds, which is illegal and illegal, and relevant departments should seriously deal with intermediaries suspected of illegal or illegal actions.

“Precise regulation” of housing-related funds in many places

Financial regulatory authorities in Beijing, Shanghai, Guangzhou, Shenzhen and many other places have recently taken action to carry out precise control of housing-related funds to strictly prevent consumption loans, business loans and other funds from flowing into the property market in violation of regulations.

In 2020, the overall financing environment will be relatively loose and interest rates will fall. Some people have the impulse to use lower interest rate consumer loans, business loans and other funds to buy real estate. Taking “business loans” as an example, it is understood that in 2020, many banks’ housing loan business loan interest rates will drop below 4%, and individual high-quality companies can even get as low as 3.65%, compared with Beijing’s housing loan interest rates in the same period. The “spread” is intuitively visible, and the loan can be repaid after interest. The “business loan” itself is to support the entrepreneurial development of small and micro enterprises, but some of the funds have flowed into the property market, which is really a “good idea.”

Industry insiders said that relevant supervision must be strengthened, and the inflow of illegal funds into real estate should be publicly and seriously investigated to reduce rent-seeking space.

In addition to Shenzhen’s relevant financial regulatory authorities convening a meeting with major commercial banks within its jurisdiction to conduct investigations on March 11, the “2021 Shanghai Credit Policy Guidelines” issued by the Shanghai Headquarters of the People’s Bank of China on March 12 also emphasized that financial institutions must be reasonable Control the growth rate and proportion of real estate loans, strengthen the management of personal housing loans, strictly examine the authenticity of lenders’ personal information, and effectively prevent consumption loans and business loans from flowing into the real estate market in violation of regulations.

The Guangdong Banking and Insurance Regulatory Bureau also issued the “Notice on Organizing Banking Institutions to Carry out Operational Loans and Personal Consumption Loans Risk Investigations”, requiring banking institutions within the jurisdiction to focus on credit investigation, credit review and approval, post-credit management, and third-party institutions Carry out all-round risk investigation in various links including business cooperation.

Intermediary packaging companies arbitrage funds illegally and illegally

A number of commercial banks interviewed by reporters stated that they have passed measures such as strict qualification review of operating loan entities and strengthened monitoring of the flow of credit funds to prevent operating loan funds from flowing into real estate and other illegal areas, and will immediately withdraw their loans once they find that funds have flowed into the real estate market.

However, many commercial bankers also said that in the loan disbursement link, the bank will review the authenticity of the fund use certification materials and the authenticity of the trading background, and avoid issuing loans to companies that have no actual operation and untrue operating flow. However, in reality, there are some intermediaries who “push the flames” to instigate customer packaging companies, and circumvent bank surveillance through multiple transfers. There are even intermediary companies that clearly mark prices for the purchase of shell companies and other services.

The reporter has received a phone call from an intermediary who recommends loans. When the reporter asked whether the loan can be used to buy a house, the intermediary said that they will prepare the necessary bills in advance and can be used directly for the purchase of a house. The officer also said that “accepting new companies, new shareholders, new legal persons”, “just divorced, just transferred, and all operations”, etc., can prepare a “full set of information”.

“Some institutions or individuals in society claim that they can withdraw bank loan funds, which is illegal. Such illegal activities may cause their own property losses and adversely affect personal credit. Please don’t believe them credulously.” Fan Baoming, deputy general manager of the Consumer Finance Department of Bank of China Shenzhen Branch said.

To prevent these “partial doors”, bank audits are also continuing to tighten. Liu Shanghai, deputy general manager of the Personal Loan Management Center of the Shenzhen Branch of Industrial and Commercial Bank of China, said that in the process of handling operating loans, conduct detailed pre-loan investigations and reasonable credit extensions, strictly review the operating conditions of the borrower’s operating entity, and carefully evaluate the borrower’s funds The authenticity of demand and the reliability of solvency do not support the purchase of new real estate in the past year as collateral, to ensure the true compliance of the business background from the source, and the steady and compliant development of credit operations.

The relevant person in charge of the Shenzhen branch of Everbright Bank also said that Everbright Bank has been very strict in monitoring the inflow of bank loan funds into real estate. For example, through systematic fund supervision and manual spot checks, check whether the flow of funds is in compliance. In addition, the bank will regularly check whether the borrower and his spouse or guarantor have new housing loan records after the loan is issued, or check whether there is a new housing situation through file search. Once the loan funds are found to have flowed into real estate, the bank will require the borrower to repay the bank loan in full.

Relevant persons from the Small and Micro Finance Business Department of the Shenzhen Branch of China Minsheng Bank stated that the qualification review of borrowers will be strengthened before lending, and loans will not be issued to companies that have no actual operation or untrue operating flow. For borrowers who actually operate companies are established or have a short transfer time Critical review.

Clients defaulting and embezzling loans will be included in the “blacklist”

Many industry insiders said that business loans illegally entered the property market, whether it is for borrowing companies or home buyers, there are many hidden risks. A relevant person from a major state-owned bank told reporters that there are legal risks in fraudulent loan materials. Customers fraudulently obtain business loans by submitting false materials. Once verified, there is a legal risk of being investigated for fraudulent loan crimes and other criminal liabilities. In addition, customers who are unable to repay their loans in advance may face risks such as bank litigation and seizure of mortgaged properties. At the same time, violating customers will also be blacklisted, which may affect customers’ subsequent applications for loans at the bank. During the interview, the reporter also learned that some borrowers have been withdrawn by banks in advance due to illegal use of operating loans.

Some people in the banking industry also said frankly that under normal circumstances, banks can only check their own funds, and it is true that they cannot effectively monitor the transfer of funds across banks. This also allows some people to take advantage of the loopholes. Dong Ximiao, chief researcher of China Merchants Finance, also suggested that regulatory authorities can use regulatory technology to create an inter-bank and comprehensive system to further enhance the ability to monitor the flow of housing-related funds. He also said that the regulatory authorities can also use some typical cases to emphasize the seriousness of the policy, and at the same time increase the cost of illegal misappropriation of funds by borrowers, and guide them to apply for bank loans in a lawful and compliant manner. For intermediaries suspected of violating laws and regulations, relevant departments must also severely deal with them.

Dong Ximiao said that to prevent the illegal flow of funds into the property market, it is fundamentally necessary to strengthen the macro-control of the real estate and stabilize the property market expectations. The market tends to stabilize, and the inflow of funds into the property market through various means will naturally decrease.