12 June 2015 – Expansión
The Spanish Mortgage Association (‘Asociación Hipotecaria Española’ or AHE), whose members are all banks, believes that the sector must sell off its real estate portfolio so that it can, progressively, focus its resources on its core banking activity once more. According to the economic report issued by the General Assembly of the AHE, the real estate market is now showing its first signs of revival and recovery, after its “significant adjustment” since 2007.
Meanwhile, the trade association also analyses whether the recovery in mortgage lending is happening in the right way, after some bankers raised concerns. In this regard, the AHE notes that the recovery in terms of mortgages is positive, and so too is the competition between entities, as that is leading to lower prices, which is in turn facilitating access to credit for families. Nevertheless, the association draws attention to the fact that “we cannot highlight enough the importance of properly assessing the risks in order to avoid malfunctions such as those experienced in recent years”.
The risks are particularly high during periods of extraordinary economic stimuli and/or when interest rate curves flatten out.
Original story: Expansión (by M.R.)
Translation: Carmel Drake