Banking, Guidelines for the valuation of properties to guarantee loans
Now available the “Guidelines for the evaluation of properties to guarantee uncollectable loans”: a new tool to promote the transparency and correctness of the assessments of properties subject to judicial and extrajudicial enforcement procedures.
This was announced by ABI during the current conference “Efficient management of credit recovery procedures”, highlighting the objective achieved starting from the Memorandum of Understanding for the valuation of properties to guarantee bad debts subscribed together with the main operators of the market (Assilea-Italian association leasing, Assoimmobiliare-Association of Real Estate Industry, Assovib, National Board of Agrotechnics and Agrotechnical Graduates, National Board of Agricultural Experts and Graduated Agricultural Experts, Confedilizia, National Council of Architects Conservation Planners, Conservators, Council National of Engineers, Council of the National Order of Agronomists and Forest Doctors, National Council of Industrial Experts and Graduated Industrial Experts, National Council of Surveyors and Surveyors, E-Valuations-Institute of Estimates and Evaluations, Fiaip-Italian Federation of Professional Estate Agents , Isivi-Italian Institute for Real Estate Evaluation, Rics-Royal Institution of Chartered Surveyors, Tecnoborsa-Consortium for the Development of the S.C.p.A Real Estate Market, TEGoVA -The European Group of Valuers’ Association, T6-Study Table on Italian Executions).
The document – which will be sent to the Supervisory Authorities, to the Superior Council of Magistracy (CSM) and to the competent Dicasteries – comes to maturity also following recent regulations adopted to deal with the management of bad debts.
Prepared on the basis of international and national valuation standards, and in compliance with the principles set out in the CSM Guidelines on good practice in the field of real estate executions and intended for judges, experts and Technical Office Consultants (Ctu), also has the objective to help facilitate the implementation of the regulation on defaults in real estate loans introduced by the European Directive on mortgage loans.
Among the aspects of greater importance contained in the document, we note in particular:
the attention to the figure of the expert;
the definition of “Market value” of the building being executed;
the analysis activity for the identification of the potential risks of the real estate transaction;
the development of an evaluation certificate for full access to information.
The Guidelines therefore aim at enhancing the real estate guarantee with a positive impact in terms of efficiency in recovering the loan disbursed, favoring the maximization of the value of the residual assets eventually allocated to the debtor.
Rome, 23 January 2018
Source ABI Italian Banking Association
