Housing Finance Firms Scrutinized for Lending Issues
The National Housing Bank (NHB) is intensifying its scrutiny of housing finance companies (HFCs) for violating loan-to-value (LTV) norms concerning high-value home loans, according to sources familiar with the matter. Regulatory inspections by the NHB uncovered instances where loans exceeding ₹75 lakh were approved with LTVs as high as 90%, breaching the established 75% limit. The NHB has instructed lenders to reclassify these loans as non-home loans (NHL). “The regulator has identified several mortgage lenders disbursing substantial amounts for high-value residential properties,” an NHB official stated. “The NHB has communicated with these firms, ordering them to cease such practices and…