Regulators Warn Banks Over Mortgage Pre-payments - Yicai.com

Under pressure from regulators, banks have begun accelerating the administration of mortgage prepayments and opened up previously “hidden” application channels, according to Yicai.com. The Banking and Insurance Regulatory Commission (CBRC) and the People's Bank of China (PBOC) warned banks in February to adhere to contractual rights of buyers to pre-pay mortgages. With the steady recovery of the economy and the improvement of the rate of return on residents' assets, the issue of prepayment is expected to be alleviated. However, with the transformation of the real estate market to a new development model, banks who have become over-reliant on real estate loans will face challenges, the news outlet said.