- The relationship covers almost the entire sector with mortgage activity
A total of 86 financial entities have adhered to the Code of Good Practice for the viable restructuring of debts with a mortgage guarantee on the habitual residence. The list has been forwarded to the Official State Gazette for publication, as established in Royal Decree Law 6/2012 of March 9 on urgent measures to protect mortgage debtors without resources. The relationship covers practically all the entities with activity in the mortgage market and includes all the major companies in the sector.
As stated in the royal decree, adherence to the Code is voluntary, although once signed it becomes mandatory for a minimum period of two years, automatically renewable for annual periods. It is applied to homes of up to 200,000 euros, an amount that graduates according to the number of inhabitants of the municipality. It is intended to protect families at risk of social exclusion, specifically, those whose members are all unemployed and whose mortgage payment exceeds 60% of the net income of the entire family unit, among other criteria.
The Code establishes a series of steps in order to avoid eviction, allowing in certain cases to settle the debt with the delivery of the home (payment in payment). Before reaching this, the possibility of debt restructuring is first opened, with a lack of payment of four years, an extension of the term to 40 years and a reduction in the interest rate (Euribor plus 0.25 points). percentage). If this restructuring plan proves to be unfeasible (the quota continues to exceed 60% of the income of the family unit), the option is foreseen for the creditor entity to grant a discount, which may be 25% of the debt. The last step would be to give in payment, although the debtor may remain in the home for two years before the eviction, by paying an annual rent of 3% of the outstanding debt.
The entities that have signed the Code are obliged to give maximum publicity to it among their clients. A Control Commission will be in charge of monitoring its compliance. Representatives of the Spanish Mortgage Association, the Bank of Spain, the CNMV and the Secretary of State for Economy and Business Support who will chair the commission and have a casting vote participate in it. Clients of financial entities that have signed the Code may claim before the Bank of Spain in case of default.
