Interim Measures for the Pilot Project of Mortgage Loan for Farmers’ Housing Property Rights (full text)

　　In order to promote the pilot project of mortgage loan for farmers’ housing property rights in accordance with the law, According to the spirit of "Guiding Opinions of the State Council on Piloting the Management Right of Rural Contracted Land and Mortgage Loan for Farmers’ Housing Property Rights" (Guo Fa [2015] No.45) and "Decision of the National People’s Congress Standing Committee (NPCSC) on authorizing the State Council to temporarily adjust and implement relevant laws and regulations in 232 pilot counties (cities, districts) such as Daxing District in Beijing and 59 pilot counties (cities, districts) such as Jixian County in Tianjin", The "Interim Measures" (Annex 1) and "List of pilot counties (cities, districts) for mortgage loans of farmers’ housing property rights" (Annex 2) are hereby printed and distributed to you, please conscientiously implement them according to the actual situation.

　　Annex: 1. Interim Measures for the Pilot Project of Mortgage Loan for Farmers’ Housing Property Rights

　　2. List of pilot counties (cities, districts) for mortgage loans of farmers’ housing property rights.

　　China people’s bank CBRC CIRC

　　Ministry of Finance, Ministry of Land and Resources, Ministry of Housing and Urban-Rural Development

　　March 15, 2016

　　Annex 1

　　Interim measures for the pilot project of mortgage loan for farmers’ housing property rights

　　Article 1 In order to promote the pilot project of mortgage loans for farmers’ housing property rights in accordance with the law, increase effective financial support for agriculture, rural areas and farmers, and protect the legitimate rights and interests of borrowers, These measures are formulated in accordance with policies and regulations such as "Guiding Opinions of the State Council on Piloting the Management Right of Rural Contracted Land and Mortgage Loan for Farmers’ Housing Property Rights" (Guo Fa [2015] No.45) and "Decision of the NPC Standing Committee on authorizing the State Council to temporarily adjust and implement relevant laws and regulations in 232 pilot counties (cities, districts) such as Daxing District in Beijing and 59 pilot counties (cities, districts) such as Jixian County in Tianjin.

　　Article 2 The term "mortgage loan for farmers’ housing property rights" as mentioned in these Measures refers to a loan that is issued by a banking financial institution (hereinafter referred to as the lender) to eligible farmers’ housing owners (hereinafter referred to as the borrower) with the farmers’ housing ownership and the right to use the homestead as collateral without changing the nature of the homestead ownership, and repays the principal and interest within the agreed period.

　　Article 3 The term "pilot areas" as mentioned in these Measures refers to the counties (cities, districts) explicitly authorized by the Decision of the NPC Standing Committee on authorizing the State Council to temporarily adjust and implement the relevant laws and regulations in the administrative areas of 232 pilot counties (cities, districts) such as Daxing District in Beijing and 59 pilot counties (cities, districts) such as Jixian County in Tianjin.

　　Article 4 Where a borrower applies for a loan with the ownership of farmers’ housing and the right to use the homestead as collateral, it shall meet the following conditions at the same time:

　　(1) Having full capacity for civil conduct and no bad credit record;

　　(two) there is no dispute about the ownership of the mortgaged house and the right to use the homestead, and it has the ownership certificate issued by the relevant government departments according to law, which is not included in the scope of land acquisition and demolition;

　　(3) The borrower shall have other long-term and stable living places except the peasant houses used for mortgage, and be able to provide relevant certification materials;

　　(four) the collective economic organization where it is located agrees in writing that the right to use the homestead shall be mortgaged and disposed of together with the farmers’ housing.

　　If the farmers’ houses are mortgaged, the written consent of other co-owners shall also be obtained.

　　Article 5 The mortgage loan of farmers’ housing property rights obtained by the borrower shall be given priority for legal purposes recognized by the lender, such as agricultural production and operation.

　　Article 6 The lender shall make overall consideration of the borrower’s credit status, loan demand and repayment ability, the ownership of the house used for mortgage and the value of the right to use the homestead, and reasonably and independently determine the mortgage rate and actual loan amount of the farmer’s housing property right mortgage loan. Lenders are encouraged to appropriately increase the loan mortgage rate for borrowers who are honest and trustworthy, supported by financial discount, agricultural insurance or farmers’ housing insurance.

　　Article 7 Lenders shall refer to the benchmark interest rate of the same period and grade published by the People’s Bank of China, and determine the interest rate of farmers’ housing property mortgage loan reasonably and independently in combination with the actual situation of borrowers.

　　Article 8 The lender shall reasonably and independently determine the loan term by taking into account the borrower’s age, loan amount, loan purpose, repayment ability and the conditions of farmers’ houses and homesteads used for mortgage.

　　Article 9 Lenders and borrowers can determine the value of house ownership and homestead use right fairly, justly and objectively by entrusting a third-party real estate appraisal agency for appraisal, self-appraisal by the lender or negotiation between the two parties.

　　Article 10 Lenders are encouraged to actively innovate credit products and service methods according to the needs of borrowers, simplify loan procedures, strengthen loan risk control, and comprehensively improve the quality and efficiency of loan services. In addition to the loan interest rate agreed in the mortgage contract of farmers’ housing property rights, other borrowing costs shall not be increased in addition or in disguise.

　　Article 11 Both borrowers and lenders shall, according to the provisions of the pilot areas, handle mortgage registration of house ownership and homestead use right at the real estate registration institution determined by the government in the pilot areas.

　　Article 12 If the borrower fails to perform the due debts or needs to exercise the mortgage right according to the circumstances agreed by the borrower and the borrower, the lender shall, in combination with the actual situation in the pilot area, cooperate with the government of the pilot area to dispose of the collateral through loan restructuring, orderly settlement, real estate sale or auction, etc., and the proceeds from the disposal of the collateral shall be given priority by the lender. In principle, the transferee’s scope should be limited to the relevant laws and regulations and the scope stipulated by the State Council when selling or auctioning the mortgaged farmers’ houses.

　　Article 13 The governments in the pilot areas should accelerate the registration and certification of the investigation on the ownership of houses and the right to use homesteads within their administrative areas, and actively organize and do a good job in the formulation of benchmark land prices for collective construction land, value evaluation, collateral disposal mechanism and other supporting work.

　　Article 14 Governments in pilot areas are encouraged to set up risk compensation funds for farmers’ housing property mortgage loans, which are used to share loan losses caused by force majeure such as natural disasters and protect farmers’ basic housing rights and interests during the period of collateral disposal, or to give appropriate interest subsidies to farmers’ housing property mortgage loans according to local financial resources, so as to enhance lenders’ lending incentives.

　　Fifteenth pilot areas are encouraged to provide guarantees for farmers’ housing property rights mortgage loans through government guarantee companies.

　　Article 16 The branches of the People’s Bank of China in the pilot areas should increase the support for re-lending agriculture to lenders who have achieved good results in carrying out mortgage loans for farmers’ housing property rights.

　　Article 17 The banking supervision institution shall make overall research, reasonably determine the calculation rules and incentive policies on the risk weight, capital provision and loan classification of farmers’ housing property rights mortgage loans, and support financial institutions to carry out farmers’ housing property rights mortgage loans.

　　Eighteenth insurance supervision and management institutions should speed up the improvement of agricultural insurance and farmers’ housing insurance policies, and provide credit support for borrowers by exploring various ways such as developing farmers’ housing property rights mortgage loan guarantee insurance business.

　　Nineteenth pilot working groups in each pilot area should strengthen overall coordination, rely on the actual division of responsibilities, and do a solid job in organizing the implementation, follow-up guidance and summary evaluation of pilot organizations within their jurisdiction. During the pilot period, the provinces will form an annual pilot summary report at the end of each year, which should be sent to the pilot steering group in the name of the provincial people’s government before the end of January each year (postponed in case of holidays).

　　Article 20 Branches of the People’s Bank of China shall strengthen pilot monitoring, business guidance and evaluation summary together with banking supervision institutions and other departments. The pilot counties (cities, districts) shall submit quarterly summary reports and policy suggestions, which shall be summarized by the branches above the sub-provincial city center branch of the People’s Bank of China in conjunction with the banking regulatory bureau and submitted to the office of the pilot steering group within 20 working days after the season, and printed and sent to all members of the steering group.

　　Article 21 All banking financial institutions may, in accordance with the relevant provisions of these Measures, formulate the management system and detailed rules for the implementation of farmers’ housing property rights mortgage loans, and send a copy to the People’s Bank of China and banking supervision and management institutions.

　　Twenty-second for farmers’ housing property rights to provide guarantees for others’ loans, can be implemented with reference to these measures.

　　Article 23 These Measures shall be interpreted by the People’s Bank of China, the China Banking Regulatory Commission and the relevant member units of the pilot steering group.

　　Article 24 These Measures shall come into force as of the date of promulgation.

　　Annex 2

　　List of pilot counties (cities, districts) for mortgage loans of farmers’ housing property rights