Complaints about UVA mortgage loans
a debtor mortgage with UVA credit obtained judicial endorsement so that the rate applied is attributed to the average income increase (coefficient of wage variation) and not to UVA, which is tied to the consumer price index, which sets monthly inflation, as is the case with this line of credit.
The decision benefited Marcos Azulay from Mendoza, who was the first Argentine to get a final verdict in relation to UVA removal as your loan update.
This citizen applied for a loan to fix up his home 1.2 million pesos, for a term of 15 years. Its debt, updated for inflation, now exceeds 7 million pesos,
The verdict of Judge Cecilia Landaburu, of the Second Court of Associated Judicial Management of Mendoza, Azulay’s debt was repaid in August 2019, when he owed 2.6 million pesos; and ordered the application of the Salary Variation Coefficient (CVS), as the update rate.
The decision is a precedent for nearly 100,000 UVA credit holders who have been affected by the exponential increase in their debts.
For five years, mortgage debt with UVA index grew more than six times, to 7.3 million pesos. If CVS were applied, that debt would be reduced to just over $ 4.5 millionaccording to Luz Dangelo, the lawyer representing the mortgagee.
Now the variation of the fee will depend on the increase in the average wage. If at any time wages reach inflation, then it will be fuzzy whether you will adjust for salary or for UVA.
On Twitter, deputy Julio Cobos celebrated the sentence: “The Mendoza justice system agrees with us, contractual equity has been broken and UVA credits must be renegotiated. We must immediately address the issue in Congress; since the previous administration we have insisted on this. A legal and institutional solution must be found ”.
The former governor and former vice president is the author of a bill proposing the renegotiation of contracts for UVA mortgage loans, pending with the Finance, General Legislation and Budget and Treasury commissions of Deputies. (https://www4.hcdn.gob.ar/dependencias/dsecretaria/Periodo2022/PDF2022/TP2022/1664-D-2022.pdf).
Cobos said the evolution of wages based on inflation is “completely different” to the agreed conditions. It asks to build a harmonious contractual relationship and a way out of inflation, to continue the construction of housing using mortgage loans. “If we can’t find a funding mechanism, we will continue to be complicated, as is the case with rental law”,
The decision of Landaburu stipulates that the fee to be determined by the Bank may not exceed 30% of the monthly income of the debtor and that the most favorable regime for the buyer should be applied if in the future, during the execution of the contract , other general legal regulations recognizing greater benefits.
And the magistrate clarified that the need for a national law providing for the renegotiation of contracts for UVA mortgage loans is “imperative”.
He emphasizes that the five freezes achieved by the law have given mortgage debtors some temporary peace of mind, but not a definitive solution, because “the only thing they have done is accumulate debt.”
Source: Clarin
