China Eases Mortgages for Rest of Year on Evergrande Contagion Worries
- Banks told to quicken loan approvals, renew RMBS applications
- Default risks mounting for China developers as funding dries
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China is loosening restrictions on home loans at some of its largest banks, according to people familiar with the matter, adding to signs of growing concern by authorities about contagion from the debt crisis at China Evergrande Group.
Financial regulators told some major banks late last month to accelerate approval of mortgages in the last quarter, said the people, asking not to be identified discussing a private matter. Lenders were also permitted to apply to sell securities backed by residential mortgages to free up loan quotas, easing a ban imposed early this year, the people said.