Nonghyup to suspend all mortgage loans until November… From “Household Debt Intensive Management” from Infostock Daily

Photo = NH Nonghyup Bank

[인포스탁데일리=윤서연 기자] NH Nonghyup Bank will completely suspend real estate mortgage loans until the end of November. This is the first time for a commercial bank to abruptly suspend the service.

On the 20th, Nonghyup Bank decided to completely suspend major loan products such as jeonse loans, non-face-to-face apartment collateral loans, and group-approved loans (apartment group loans) from August 24 to the end of November. It gave a big shock to the market as it decided not to handle all new loans as well as increase and renewal of contracts.

Nonghyup Bank’s loan suspension was in line with the authorities’ real estate regulations, and it started with a sense of crisis that household debt reached a dangerous level due to excessive lending due to overheating of real estate speculation.

It has already been predicted that some banks will tighten lending regulations. This is a signal from the financial authorities that banks will either raise interest rates or gradually block loans as the total amount of loans is not properly managed.

Other commercial banks, such as Woori Bank, Hana Bank, and KB Kookmin Bank, are also expected to tighten lending regulations like NH Nonghyup Bank.

Earlier, on the 13th, the financial authorities summoned executives in charge of credit from commercial banks, including Nonghyup Bank, to hold an interim inspection meeting related to loans. Some banks, such as the Nonghyup, are known to have failed to meet the annual loan standards.

Some are concerned that a complete cessation of lending could seriously harm consumers who need it.

Meanwhile, Koh Seung-beom, nominee for the Financial Services Commission, selected household debt management as a top priority. In effect, it is a declaration of war on debt. On the 17th, he said, “If necessary, we will actively pursue additional measures by using all available means.”

As loan regulations began in earnest last year, each bank adjusted the loan interest rate and limit to strengthen the total debt-to-income ratio and DSR regulations by borrower, but it was not enough.

First, the credit limit of commercial banks has been drastically reduced to the level of annual salary. Next, the time of applying the 40% DSR per borrower, which was scheduled to be expanded in stages by July 2023, is to be advanced.

Reporter Seo-yeon Yoon yoonsy0528@infostock.co.kr