Lenders are now required to carry out a rigorous assessment of the creditworthiness of their potential customers. It will no longer be possible to grant credit if it appears insufficient or if the assessment cannot be carried out due to the refusal by aspiring borrowers to provide adequate information.
The calculation of solvency is based on the borrower’s income, savings and assets. His regular expenses, debts, other financial commitments and any other relevant information will also come into play. Future borrowers must therefore provide banks with more documents than before.
The banks believe, however, that this new regulation, which adds to a long list, threatens to weigh down the process of granting loans.
” The valuation consists in determining the value of the property after analysis of all the documents communicated by the lender and which are useful for carrying out the valuation according to the standards in force ” (article L. 313-21 of the Code of the consumption).
“When the lender carries out or has carried out the valuation of the property for residential use financed with the aid of a loan mentioned in Article L. 313-1, he shall ensure that:
1° This be carried out by a property valuation expert who demonstrates his professional competence and who is independent of the loan granting decision-making process in order to provide an impartial and objective valuation;
2° Reliable evaluation standards are applied, taking into account internationally recognized standards” .