After more than a year of delay, the National Monetary Council (CMN) regulated the use of property as collateral in more than one real estate credit operation. Provided for in the new Legal Framework for Guaranteessanctioned in October 2023, the possibility depended on CMN regulation to come into force.
With the Legal Framework of Guarantees lawthe consumer will be able to pledge a property as collateral in several simultaneous credit operations. This applies if the borrower has an extra home, and the inclusion of a single property as collateral for a loan is prohibited. According to the government, this prohibition prevents a family from becoming homeless and having their property taken away if they fail to pay a debt.
Before the law, a house could only be pledged as collateral in a single credit transaction, even if the loan or financing had a lower value. Now, the difference between the value of the credit operation and the asset given as collateral can be used in other operations, as long as they are within the same financial institution.
For example, if a property worth R$300,000 was given as collateral for a loan worth R$50,000, the R$250,000 difference could not be given as collateral until the transaction was paid off. If the consumer didn’t pay the loan, and the house went up for auction, the consumer pocketed the difference. Only then could I use the money.
Now, the remaining R$250,000 can be used for other credit operations, compromising the entire value of the house. It is not possible to give the same asset as collateral to different banks.
Enhancements
With the established rule, if a property serves as collateral for more than one credit operation, the ratio between the sum of the nominal value of the new operation and the outstanding balances of operations already guaranteed and the valuation value of the property given as collateral cannot be higher than the credit quota limit applicable to the predominant credit operation.
The CMN resolution also establishes that new credit operations guaranteed by the same property may have remuneration, updating and amortization conditions different from those agreed in the original credit operation.
For loan operations to individuals secured by residential properties, the CMN allowed the financial institution to request the contracting of a security guarantee that provides coverage for the risks of death and permanent disability of the borrower and physical damage to the property. According to the BC, the secondary guarantee will give more security to the sharing of guarantees in the event of accidents.
Secondary guarantee
According to the Central Bank (BC), the financial institution must request secondary guarantee without compromising the borrowers’ freedom to choose an insurance policy (life and disability), and the same conditions relating to the matter applicable to borrowers must be observed. housing financing.
“The approved measures contribute to the establishment of appropriate conditions to optimize the use of fixed assets by debtors and creditors, with the potential to expand the granting of real estate credit, especially loans to individuals secured by residential properties, preserving , at the same time, the robustness of the origination rules applicable to real estate credit operations”, highlighted the BC, in a note.
