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The Financial Supervisory Authority will closely monitor new individual players and the development of the mortgage market.
The memorandum "Housing Financing Requirements" published on Thursday.
"The traditional banking model in Sweden to intensify competition in the mortgage market is fundamentally positive, but it should not be at the expense of consumer interests and stability as the framework regulatory is supposed to make available and what is the supervisory authority to oversee., writes the authority.
It is emphasized that a well-functioning mortgage market requires "responsible actors who will for a long period of time. "
Since banks have a relatively short term of financing, they take a refinancing risk, which is" limited by the rules that they must meet the capital and Liquidity. "
The normal case should be long-term and apply to new mortgage borrowers, but they are not covered by the requirements of this. and the other rules surrounding banks. The need for solidity and long-term needs to be met by other means. , "he says further.
Many borrowers prematurely repay their mortgages, as when buying a new home.
" But the decision to solve the loan should be an opportunity for the borrower, not a coercion. New homeowner financing should reflect the expected maturity of the mortgage, FI writes
Long-term financing solutions should however be found when insurance and retirement managers have long-term commitments that can be long term. less liquid assets. "By turning to such investors, homeowners can obtain financing that reflects the expected maturity of mortgages and, to a greater extent, reduce maturity imbalances in the financial system and thus systemic risks," says FI. 19659007] For example, new mortgage borrowers should be able to explain how borrowers are aware of possible transfers, how they plan to transfer loans to other players and how credits are tracked after the transfer of the loans. FI will make such assessments prominent in the licensing and supervision of mortgage borrowers.
"New mortgage borrowers and alternative models of mortgage housing may also increase the need for supervision to ensure compliance with other guarantees. and the duty of care is also maintained in the case of credit transfers, possibly in several stages, and where the original creditor does not bear a risk of his own ", it is stated in the memorandum.
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