Noos News•
Rabobank was fined €12 million. According to the Dutch Authority for the Financial Markets (AFM), the bank violated the rules when offering so-called tailor-made mortgages between mid-2019 and mid-2021. Rabobank allegedly made these loans without properly checking whether they were responsible for customers. Rabobank is studying the decision and considering the appeal.
With a tailor-made mortgage, the servicer may deviate from the maximum lending standards. The requirement is that the servicer uses calculations and documents to prove why a tailored mortgage is suitable. Rabobank is said to have acted with “insufficient caution”.
“The question of whether a mortgage can be obtained has in many cases been left to the personal interpretation of the Rabobank employee concerned,” explains market watchdog AFM. “This has created a serious risk that Rabobank customers will receive loans that are too high for their situation.”
The AFM conducted a random sample which showed that mortgages made by Rabobank were “above the maximum that could be borrowed based on income”. The regulator notes that customers who took out these loans had high repayment obligations for a long period.
“It’s about the past”
“The AFM decision is about matters of the past,” says Stephane Decrin, CEO of Rabobank. “Our admissions policy and admissions process have been continuously tightened and clarified in recent years, in close consultation with the AFM, in order to continue to offer credit in a responsible manner.”
The Bank disagrees with the AFM’s conclusion that the standards were structurally breached and therefore believes the amount of the fine is disproportionate. Assigned real estate loans make up a small portion of the bank’s total real estate loan portfolio. The annual accounts for 2022 include an allocation for part of the fine amount.
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