FNB home loans chief executive Jan Kleynhans held discussions with the banking ombud Clive Pillay in which they had agreed that the bank's criteria for assessing home loans approved in principle over a year ago were "fair and equitable". Chaos and upheaval was predicted for buyers, sellers, estate agents and others when FNB made the original announcement. FNB however has responded by saying that the applications affect only 0.5% of their home loan customer base, that take up to a year or longer to register, are of a development-type nature (excluding building bonds), and are not those that normally take three to four months to transfer and register.
FNB will only re-assess applications which are 12 months or older in terms of grant date and where the following criteria apply:
- FNB guarantees have not yet been issued, nor has documentation been signed at the attorney.
- Where any judgments or defaults have arisen after the time of the original granting of the home loan
- Where confirmation is received from customers that they are unable to afford the home loan subsequent to the original approval
The bottom line is that FNB is, given declining affordability levels merely complying with the National Credit Act in trying to avoid "reckless lending" to people who will be severely over indebted should the transaction go ahead.
See FNB 'Reassessing' home loans
and Chaos warning on bond reviews