Peng Yan, reporter of this newspaper

"After the mortgage is re-lent, the interest rate is as low as 3.25%" "can save hundreds of thousands of yuan in interest"... Recently, some so-called loan intermediaries have promoted the mortgage to business business to consumers by telephone, claiming that they can "re-lend and reduce interest rates".

An investigation by a reporter from Securities Daily found that the so-called "on-loan interest rate reduction" is that some illegal platforms claim that they can replace high-interest mortgages with low-interest operating loans, helping buyers who enter the market at high interest rates to reduce the interest expense of remaining mortgages. But behind the tempting "low interest rate", there are great risks.

Behind the "on-lending rate cut"

Multiple charging schemes are hidden

It is understood that many loan intermediaries have recently claimed that they can help consumers provide mortgage loan replacement services, that is, "on-lending and interest rate reduction", inducing consumers to use intermediary bridge funds to settle housing loans, and then bank business loans to return bridge funds.

According to relevant regulatory provisions, business loans must be used for production and operation turnover, and must not be used in violation of regulations to purchase houses, settle house payments, and repay housing payments advanced through other channels. If the consumer does not use the loan for the purpose agreed in the loan contract, he or she may recover the loan early and be liable for default.

In addition, there are multiple charging methods behind the "on-loan interest rate reduction", including bridge fund interest fees, service fees, third-party collection fees, notary fees, etc. Loan intermediaries do not disclose risks when soliciting business.

"Handling business loans can 're-lend and reduce interest rates', and the interest rate of housing loans against operating loans can be 3.25%." A loan intermediary said that his company can provide a "one-stop" service of foreclosure + loan application. Buyers need to settle the mortgage first, and then mortgage the property to the bank, and they can successfully lend the operating loan. The bridge funds to settle the mortgage can be advanced by an intermediary, but interest on the advance is charged.

According to the reporter, this bridge advance is usually charged 10.0% interest every 6 days, taking a loan of 100 million yuan as an example, 10 days will generate a high interest of 6000,<> yuan.

The intermediary also said that a service fee of 1% of the loan amount will also be charged, and if there is no business in the name, a service fee ranging from 6000,12000 yuan to <>,<> yuan will be charged. In practice, the whole process can take a month to complete.

Industry insiders said that unscrupulous intermediaries will encourage borrowers to use the intermediary's bridge funds to repay the remaining housing loans, and collect high fees in various names such as bridge interest, service fees, and handling fees. The combined cost of funds after refinancing may be higher than the original mortgage interest rate.

In addition, "on-lending and interest rate reduction" also hides risks such as the rupture of the capital chain and infringement of information security. Some insiders said that operating loans are short-term loans, the term is generally 1 to 3 years, and most of the principal needs to be repaid at one time, if the principal cannot be repaid in time after the loan expires, there may be a risk of capital chain breakage.

Meng Bo, a lawyer at Beijing Jingshi Law Firm, told the Securities Daily reporter that the "re-lending" behavior may also affect the security of the parties' personal information. When choosing the on-lending service of a loan intermediary, the parties need to provide important information such as identity, account, family members, and property to the intermediary. After some intermediaries obtain personal information, they may leak or sell relevant information in order to seek illegal benefits, infringing on the information security of the parties.

Regulatory departments have intensified investigation and handling

Experts recommend working on many fronts

Regarding the issue of "illegal conversion of housing loans to business loans", it has always attracted the attention of regulatory authorities. Since last year, many local banking and insurance regulatory bureaus have successively issued risk reminders to remind consumers to recognize the adverse consequences and hidden risks of re-lending operations, enhance risk prevention awareness, and protect their legitimate rights and interests.

Recently, the China Banking and Insurance Regulatory Commission (CBIRC) issued the Notice on Carrying out Special Governance Actions for Illegal Loan Intermediaries to all CBIRC bureaus, policy banks, large banks, joint-stock banks, etc., requiring all CBIRC bureaus and banking financial institutions to establish a special governance action leading group, and officially start from March 3 to deploy and carry out a six-month special governance action for illegal loan intermediaries.

In this regard, Yan Yuejin, research director of the E-House Research Institute, told the "Securities Daily" reporter that the notice is aimed at three types of subjects, namely banking institutions, loan intermediaries and home buyers. Through regulation and guidance, it helps to prevent the emergence of various gray financial businesses and ensure that the housing loan business is legal, compliant and reasonable.

"Banks should strengthen the qualification review of lenders, strengthen the management of employee behavior, and when necessary, regulate loan business by including non-performing intermediaries in the blacklist; Intermediaries need to take the initiative to disclose to customers the differences between business loans and housing mortgage loans, and give reasonable reminders on the legal consequences and adverse effects of diversion of business loan funds to purchase houses in violation of regulations; Consumers should strengthen their awareness of capital security, recognize the potential risks behind illegal 'on-lending', and handle loan business reasonably and compliantly. Chen Xiao, senior analyst at Zhuge Data Research Center, said.

Meng Bo said that lenders need to be wary of the legal risks, generally speaking, banks will stipulate the purpose of the loan in the loan contract, and if an enterprise or individual uses the business loan to repay the housing loan without authorization, it is a change of loan purpose, which violates the provisions of the Interim Measures for the Administration of Personal Loans and the Interim Measures for the Administration of Working Capital Loans. In this case, the lender not only faces the risk of being prematurely recovered by the bank, but may also be held liable for default.