Jul. 20 – Beijing municipal government recently clarified the standard procedures in commercial loans to individual house buyers looking for a second house.

Jingjianfa [2010] No. 406, issued on July 15, stipulates that borrowers apply for housing loans should fill out the “family has separated flat declaratory form” to declare their housing situation. The commercial lender should then interview the buyer(home visits when necessary), check the housing transactions or use other means to determine the implementing standard of the differential housing credit policy.

Based on the borrower’s application or authorization, the lender will need to summarize the application and submit it to the housing transaction ownership information query system. The Urban Housing and Rural Construction Committee will return the query results to the lender within two working days.

According to the notice, if a borrower provides false information, the lender should take relevant measures by law, including asset preservation, and record this with the People’s Bank personal credit information database.