Mortgage "portabilty" isn't easy in Italy even after new law

Consumer associations broke negotiation with banks on application of the so-called “Bersani Law”, a simplification law that should ease mortgage changes for the borrowers, to substitute the one they have with more favorable ones, by forbidding penalty clauses for anticipated redemption of the loan. These talks were provided by the law itself.

The problem is that the law forbids anticipated redemption penalties only for new mortgages, but for already in-being mortgages it just forbids banks from denying contract renegotiation. Consumer association want penalty clauses to be removed for everybody, while banks are willing only to a reduction. The situation is quite complicated: banks fear the effects of massive renegotiation, since mortgages rates were calculated also keeping in consideration that the borrower should have paid a penalty in case of anticipated redemption. On the other side, consumers associations challenge a different treatment of “old mortgages” and “new mortgages”.

In fact, we must say that the present situation is also caused by the “Bersani law“, that should have clarified this point, without putting it of to banks and consumer associations talks.
Making laws without dealing crucial points is becoming an awful and dangerous Italian lawmakers practice: think about the law on publishing, that equalized blogs to newspapers but deferred to an authority to determine which ones and criteria, a classic example of a law that deals only with regulation and secondary sides, and delegates sides of constitutional relevance on freedom of expression.

Original post (in Italian): Portabilità dei mutui, si complicano le cose

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