NHB asks housing finance companies to share details of the default amount

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By Accommodation Times News Service

Accordingly, NHB framed guidelines to put in place a mechanism of sharing information on willful defaults of Rs 25lakh and above so as to ensure further funds are not made available to them

Housing finance companies regulator, National Housing Bank, has asked mortgage firms to share information on default of Rs 25lakh and above by willful defaulters so that further credit to such borrowers is choked.

“This is pursuant to the advice of RBI and recommendation of the Puri Committee report, which states that HFCs may also report data on wilful defaulters to all Credit Information Companies (CICs) because the exclusion of such entities from the guidelines of wilful defaulters may lead to arbitrage by the borrowers,” NHB said. Accordingly, NHB framed guidelines to put in place a mechanism of sharing information on wilful defaults of Rs 25 lakh and above so as to ensure further funds are not made available to them. As per the norms, HFCs can take penal action against wilful defaulters. “Wherever possible, HFCs should adopt a proactive approach for a change of management of the wilfully defaulting borrower unit,” it said. Under the set-up, no additional facilities will be granted by any HFC to the listed wilful defaulters.





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