- More than 45,000 families have benefited from measures to alleviate the effects of the crisis in the area of housing
- 50,852 requests have been received since the Code of Good Practice was launched in 2012
In the three and a half years that the Code of Good Practices (CBP) has been in force, a total of 50,852 families at risk of social exclusion have applied for it in order to alleviate their mortgage debt. Of these, 23,640 have managed to restructure the mortgage (18,620), the dación en pago (5,014) or a withdrawal (6). In the first six months of 2015, requests have increased 17.78% over the second half of the previous year, to 13,436 requests. The semi-annual report has been forwarded to Parliament today by the Monitoring Committee. The set of measures implemented by the Government in this area has favored 45,000 families. In addition to applying the CBP, the Social Housing Fund (FSV) has awarded 4,000 homes and 17,551 evictions have been suspended.
Since CBP was launched three and a half years ago, 50,852 applications have been registered, of which 23,640 have been resolved. The rest either do not fall within the scope of application, do not comply with the requirements or have not provided the necessary documentation. Of the resolved requests, 18,620 ended with a restructuring of the pending debt, 6 with a write-off and in 5,014 cases the payment was agreed, with the consequent extinction of the debt.
In the first half of the year, entities received 13,436 requests, 17.78% more than during the second half of 2014. Of the requests received, a total of 7,141 operations have been resolved (7.73% more). Of these, in 5,970 cases, a viable restructuring of the outstanding debt was concluded (15.67% more). In 1,171 cases, the payment of the home was agreed in payment of the mortgage debt, 20.17% less. No operation ended with a remove.
The CBP was signed in March 2012 with practically all the entities with mortgage activity in Spain, up to 95 today. The Government promoted this Code of voluntary adherence but of mandatory compliance for two years for the signatory entities. The objective was to provide a solution to families with difficulties in coping with the payment of their mortgage debts, either because they are unemployed or without income. Three options were established -negotiation of terms and installments with the entities or debt restructuring, deductions and payment in kind-, with grace periods, amortization up to 40 years, reduction of the interest rate applicable to Euribor + 0.25 points and even the possibility of staying in the house by paying a reduced rent.
The exclusion threshold or conditions to be eligible for CBP were also defined. Specifically, it was established that it was the first and only home and that all family members had no income derived from work or economic activities. In addition, the mortgage payment must be greater than 50% of the net income received by all the members of the family unit. They must also lack patrimonial assets with which to face the debt.
The Government has twice expanded the scope of both CBP and FSV to accommodate more families. The initial Code was expanded in the 2013 Law on measures to strengthen protection for mortgage debtors, debt restructuring and social rent. Its scope was extended again last February, in the Royal Decree Law of second chance mechanism, reduction of financial burden and other social measures.
Among the latest modifications introduced, the increase in the annual family income limit up to three times the IPREM (Public Indicator of Multiple Income) stands out. Until then it was calculated for 12 payments and it is calculated for 14 -up from 19,170 to 22,365 euros-, as well as the inclusion of those over 60 years. The property purchase price limit was raised from 250,000 to 300,000 euros and the final inapplication of the floor clauses was established for debtors located on the threshold of the new CBP.
