The recent ruling of the Court of Justice of the European Union (CJEU) on unfair terms, which supports the termination of the contract if it harms the client, will foreseeably lead to an increase in foreclosures or foreclosures, according to financial sources.
This rebound will not affect in principle the most vulnerable groups or foreclosures on first homes, in clear downward trend, but to second properties or loans from the property and developer sector.
Data from the National Institute of Statistics (INE), at the end of 2018, reveal that although the total of foreclosures initiated during the year, which includes all types of farms (urban, rural, solar and other), grew 1 , 6%, up to 55,857, foreclosures on customary homes fell by 40.7%.
Despite the fact that foreclosures on all types of housing-usual or second homes-were reduced by 6.6% to 25,903, the total of foreclosures grew due to the increase in operations on land, premises, garages, warehouses and storage rooms.
The risk measurement agency Moody's has published a report on the impact of the doctrine of the CJEU, known on March 26, in the banking business, and concludes that it is positive and raises its credit rating outlook on banking, since It provides legal security.
In a report prepared by Alberto Postigo, senior vice president of Moody's, it is explained that the doctrine of the CJEU provides financial institutions with legal security and will allow them to deal more confidently with judicial processes, which had been waiting for the decision of the court with Headquarters in Luxembourg.
Now, the report adds, it is expected that mortgage lawsuits will be reactivated and delinquent loans will be reduced in the balance sheets of banks at the same time.
Two of the main associations in defense of the consumers of financial products and services, Asufin and Adicae, have valued the European ruling, although it does not finish solving the doubts about the consequences of the nullity of the clause of early expiration, since leaves in the hands of national judges the decision of whether the contract can subsist once the clause has been annulled.
The doctrine of the CJEU is applicable only in the processes already underway, while the new procedures will be regulated by the new mortgage law, recalls Moody's.
The recently approved Spanish mortgage law, which will come into force in mid-June, adds elements of consumer protection and balances the distribution of expenses involved in the creation of a mortgage.
Specifically, it eliminates the ground clauses and is more demanding with the start of the eviction procedure, which can only begin if there are twelve unpaid installments or 3% of the capital loaned in the first half of the life of the loan, or 15 installments or the 7% in the second half of the credit.
Although it extends the deadline for an eviction, Moody's notes, it also introduces greater transparency, making it less likely that consumers will choose to go to court.
In response to several questions referred by the Spanish courts, the European Court interpreted the 1993 European directive on unfair terms in contracts concluded with consumers.
The CJEU clarifies that, on the one hand, the EU directive opposes that an early termination clause of a mortgage loan contract declared abusive "be partially preserved by removing the elements that make it abusive, when such suppression amounts to modifying the content of said clause affecting its essence ".
However, it points out that this directive does not preclude the national judge from "remedying" the nullity of the abusive clause "replacing it with the new wording of the legal provision that inspired said clause, applicable in case of agreement between the parties to the clause. contract".