The real estate market is preparing for a new reform of the Mortgage Law, announced by the Minister of Economy, Luis de Guindos. Although these measures are part of a much larger reform, it is known that it can introduce changes not only for financial institutions but also for agents in the sector. This reform seeks to adapt to European regulations and avoid the judicialization of loans.
What will affect the new reform of the mortgage law?
The impact that has more relevance, so far, is the commercialization of mortgages. What would allow real estate agents to be intermediaries in the sale of loans, may do so in the name of the financial institution and throughout the European territory.
The agents that want to be intermediaries, must comply with a series of requirements and be enrolled in a platform where they will be subject to supervision by the Bank of Spain. Outside Spain and in case they work with a single entity in the Spanish territory, they will be aware and will be responsible to the authorities.
The list of requirements for real estate companies wishing to market mortgages is quite long. These include: liability insurance, that its agents are prepared for commercialization with the necessary minimum knowledge, to be agent of recognized prestige and most important, to have a group of people in charge of resolving the extrajudicial matters for the consumer’s claims.
By complying with all these conditions, any real estate agent may market credits both in Spain and throughout the European territory if, only if, the Bank of Spain allows it. After taking effect, the bank will have three months to make the appropriate changes in the remuneration policy of its employees.
This law is created to benefit consumers, both collectives and self-employed. They can seek mortgage financing with the confidence that lenders have a guarantee and are supervised. As part of the reform, the client will have seven days so that, with all the paperwork ready and in hand, resolve all doubts regarding the mortgage contract.