Unprecedented demonstration of brokers in front of the Banque de France

Les courtiers ont prévu de manifester le 20 septembre devant le siège de la Banque de France.

The battle ax between the brokers and the Banque de France has been unearthed. The last interview with the governor of the bicentennial institution got stuck in their throats. Excerpts: “Real estate loans continue to be very dynamic, with growth of over 6%. The rates are gradually rising: in July we were on average at 1.45%. […] The dropout rate is there to protect the borrowers. So some want to lend more to the French. Let them say it!“, he said last week on BFM (see tweet below). In François Villeroy de Galhau’s viewfinder, the brokers, accused of being alarmists.

In a recent survey published this summer, 45% of brokers say that the rejection rate has hovered between 20% and 30% since January 1, 2022. A figure that has become, in the press, a 45% rejection, without the brokers, who had commissioned the survey, contesting this figure. Which, on the contrary, the governor of the Banque de France was quick to do. For runners, it is the final straw. “The governor is in denial and contempt.”denounces Bérengère Dubus, general secretary of the Union of Credit Intermediaries (UIC), for whom this event is a first.

Tightrope walker Bruno Le Maire

The UIC, which claims to be the only mortgage broker union in France, is calling on the profession to demonstrate on September 20 in front of the Banque de France headquarters in the 1st arrondissement of Paris. “We denounce an immobility of the public authorities that weighs serious consequences on real estate and the life of the French in general.“, explains Bérengère Dubus. This mortgage expert fears a market freeze that prevents tenants from becoming homeowners. As for banks, we want to be reassuring that the technical constraint linked to the attrition rate is only temporary.

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On October 1, this maximum rate will be updated, like every three months. Problem: Credit rates are “updated” every month and, due to rampant inflation, they are spinning at high speed. “The urgent solution must be to shorten the wear rate update time to one month.says Berangere Dubus. “The mortgage market has changed in the last two months. The current wear rate update is not related to reality.“, confirms a former banker who assures that”there is still time to buy or invest. There is no threat in the real estate market, which is the safest asset class to create or develop wealth.“However, Bercy has refused, for the time being, to change the calculation method because, on the advice of the Banque de France, the Government wants to avoid the risk of over-indebtedness. However, aligning the rate update date of attrition with the credit rate would avoid having an attrition rate out of step with reality and would unlock several thousand files.

I received a file in late 2021 that was rejected because the overall rate exceeded the attrition rate by 0.02%. The couple was prepared to wait for the next attrition rate update. But during this time, its debt ratio exceeded the authorized 35%, due to the increase in the credit rate.says Berengère Dubus. In short, the situation is tense not only in the market but also between bankers and brokers. In the middle, Bruno Le Maire, Minister of the Economy and Finance but also President of the Higher Council for Financial Stability, forced to play tightrope walker to preserve the purchasing power of the French without alienating the banks.

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