Mortgage loans decline for 4th month in Nov.

SEOUL, Dec. 17 (Yonhap) -- The growth of mortgage lending in South Korea slowed
for a fourth month in November after financial authorities toughened loan
regulations amid concerns over a housing bubble, financial watchdogs said
Thursday.

According to the Financial Supervisory Service and the Financial Services
Commission, mortgage loans extended by local banks and other non-bank lenders
grew by 2.9 trillion won (US$2.5 billion) in November, down from an expansion of
3 trillion won the previous month.
The growth in home lending has been on the decline since August when it increased
by 4.2 trillion won, compared with 4.5 trillion won in July. In September, such
loans expanded by 3.7 trillion won, the financial market regulators said.
The notable slowdown in mortgage lending came after the Financial Supervisory
Service in September tightened borrower's debt-to-income (DTI) ratio, restricting
the maximum amount homeowners could borrow to 50 percent of their income. Similar
rules were imposed on non-banking mortgage lenders in October as the rapid growth
of home-backed loans fueled a rise in housing prices.
"We could impose further regulations if any abnormal signs arise, including loan
demands tilted toward mortgage loans," a financial regulation official said.
pbr@yna.co.kr
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