wrote A few dates on this podium CincoDías of 8/11/2010, on the liability of the debtor in the mortgage and commented on the need for caution when seeking solutions to mitigate the worst effects of this major crisis financial caution.
This scenario has been a court decision rejecting the appeal of a financial institution to continue enforcement proceedings in claim outstanding debts after the auction the property that served as collateral on a mortgage application.
Without wishing to argue from this rostrum in relation to events happening in court, if we make some observations regarding some principles of law that have served to make the decision:
• The effect of auction value: it is requirement for the enforceability of a guarantee, but it is just that and not necessarily the appraised value may be another, such as the amount of mortgage liability.
In any case, the amount, whatever can be identified in time and support from which debts are settled. The market has something to say.
• Without giving up its share of responsibility in the genesis of the crisis could have financial institutions do not believe that argument is "crucial" to attribute global responsibilities and delete rights.
• Deterioration "circumstantial" from the value of the speaker's statement is nothing but the great result of a severe economic crisis that has the international financial system and national undergoing a process of restructuring and capitalization to adapt to new environment is not negligible and temporary and therefore has a very direct impact on the value of things.
Notwithstanding the foregoing, this sentence returns to air a latent in our society debate on whether to modify the warranties in the mortgage lending Mortgage Association and from this we turn to two issues that we think are fundamental to addressing:
• The debate should be comprehensive and, therefore, must identify what circumstances are altered in granting credit if you produce this change and, above all, if we are thinking of retrospective action. What about refinancing markets? What will our mortgage bondholders? What will our shareholders and depositors? What rating agencies say? What analysts and investors say? In short, what say all those who make it possible for credit activity takes place in quantity and quality suited to the needs of our customers.
• We must ensure that in the debate two planes do not mix, even occurring at the same time, should have different treatments.
The social, emotional with a very important, must be attended and probably requires specific measures of social protection. However, despite its great importance, it can not be the reason why pretend to alter, sometimes very populist in nature, economic conditions of market performance more than 600,000 million euros that only has a delinquency rate of 2.6%.
Ultimately, though welcome reforms that make it more efficient and more transparent our mortgage market, we must give up measures in an attempt to improve the functioning of the market, not only end up hurting the most is the self- 97.4% remaining, but also the expectations of those who in future wish to access to credit.
Ah, of course, there is no need to invent anything, our 46 year mortgage law already provided for in article 140 the possibility of taking out a mortgage with the only guarantee of real estate. What happens is that as stated above, it would be convenient to use for the good of the financial markets and mortgage applicants.
Santos Gonzalez. President of the English Mortgage Association
Source: five days
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