In the framework of the 84th Banking Convention, the role of banking has been highlighted as part of the solution to promote the economic recovery of the country and, in effect, the solutions that were put in place to cushion the effects of the Coronavirus in the millions of bank users had to be quick.
Complying with payments on credit cards, car loans and, even more, mortgage loans in the midst of a pandemic represented and still is a challenge for many Mexicans.
But how did these supports work? Can you still use them if you have not yet recovered financially? We explain below:
Banking support in emergencies
The first round of bank actions took place from March to July 2020 and focused on capital and interest deferral. Among the supports, the reduction of the monthly payment by a certain percentage and period stood out, as well as the deferral scheme of up to 6 months in the payment of monthly payments (capital plus interest). The latter was the most used.
In the first case, let’s imagine that the borrower pays 15,000 pesos a month on his mortgage loan, so the bank allowed him to pay 7,500 pesos a month for 6 months and then pay the 15,000 pesos of his mortgage again.
“The accrued (generated) interest could be paid at the end, there were even banks that took that cost and did not pass it on to the client, explains Enrique Margain Pitman, coordinator of the ABM mortgage committee.
In the case of capital and interest deferral, that same person could not pay the 15,000 monthly payment for 6 months and the accrued interest was sent at the end of the amortization table, without updating or capitalization (as the regulatory facility itself specified) , and were paid at the end of the credit life
Let’s see an example:
Source: Your Easy Mortgage
The second round of banking support covers from October 2019 to the first of 2020 and focused on the restructuring of loans to offer more definitive solutions to people who had a greater impact on their mortgage loans.
“Throughout the period of the pandemic, the key to credit was kept open because delinquencies could be contained with these support programs, the overdue portfolio did not grow and additional reserves were created to those that the banks have as qualification, all of which is useful to us. to allow for future contingencies, ”said Enrique Margain.
In that sense, he indicated that still today many clients with mortgage loans come looking for solutions because they still cannot meet their payment commitment. Faced with this scenario, the coordinator of the ABM mortgage committee explained that the support has not stopped and that it is even part of the inventory of the support programs that banks have to face the current situation and crises that may arise in the future .
In this sense, it invites those who are in a difficult situation to approach their banks to expose their situation and try to jointly find a way that as a borrower you do not lose the assets that you were in the process of building.
“The important thing is to approach the banks and try to find an alternative to continue paying their mortgage loans, the bank has programs designed to provide solutions, either by extending the term, giving a grace period or helping the person to achieve their level. income is adjusted to the monthly payment you pay on your credit, “he concluded.
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