Real estate lending: the failure of Bruno Le Merair

HCSF: The easing of mortgage lending measures failed to meet expectations

HCSF. A few months ago, this unpronounceable acronym was unknown to the French. But since then, the European Central Bank (ECB) has raised its interest rates several times to fight inflation. As a result, mortgage rates have skyrocketed. In this context, the decisions of the HCSF - the High Council of Finance - are being scrutinized.

From 2019, it sets the maximum debt level for households at 35% and limits the term of loans to 25 years. This body, responsible for overseeing the financial system, met on Monday, December 4, to decide on possible adjustments for''market softening. To facilitate access to mortgages, which have fallen 40% in a year, several industry representatives have demanded the simplification of credit conditions, especially for first-time lenders. Even Bruno Le Maire supported possible changes. But. Only three decisions were actually taken, which were already known from publications.

The first concerns the term of the loan: if the repair work - energy or not - exceeds 10% of the total amount of the operation, the term of 25 years can be increased to 27 years. In addition, credit retrofits - financing the purchase of a new property - will no longer be included in the calculation of the maximum debt level. Finally, each bank has, until now, been able to deviate from the HCSF's 20%' rules'cases. This percentage was calculated on a quarterly basis. It can now be stretched over three consecutive quarters.

The French can no longer purchase property, and these technical adjustments will not solve the problem. Especially since, in fact, some of them are already being applied.

With regard to the extension of the 20% rule for three quarters, he seems not to''meets the expectations of banks, who find the system too complex to apply. It didn't take long for real estate professionals to react. The National Real Estate Federation (FNAIM) denounced 'insufficient announcements in light of the crisis', while the mediation company Meilleurtaux believes that 'the changes were not radical'. When the results are not confirmed in practice, the question of the composition of the Supreme Council of Financial Stability arises: on his person before its primary members is the Minister of Economy, Bruno Le Maire, and also the principal member is François Villeroy de Galo, governor of the Bank of France. Both men have repeatedly expressed different views on the issue in recent months. The former proposes to simplify credit conditions, considering''their "too strict", the other repeatedly warned of the risks of household overspending. "There is no more debate today. Bruno Le Maire has lost. The Bank of France has made a significant contribution and its governor does not want to be rejected," says Béranger Dubuis. "This is a lack of political courage. "

In the meantime, these measures only increase the complexity of an already unnecessarily complex system. And the housing crisis is not finding a solution.