translated from Spanish: Financial portability: the role of the Ministry of Justice

Lord Director: since January of this year and l financial portability in the mortgage field concept has been gaining momentum. This search, in theory, that a mortgagor may be its bank debt to another, ideally without higher operating costs in search of better credit conditions.
In September of this year, the banking regulator, main protagonist of this initiative together with the Ministry of finance, told the market the decision to develop an initiative of this nature to the contracting of credit products, assuring access to financial information to their loans in time and “with certainty and transparency,” said the President of the Republic on the day of the competition which should materialize generates greater competition between providers of credit…
But this initiative is already facing some obstacles, such as notarial and registration efforts from mortgage registration. Solving them will require a third party: the Ministry of Justice. The Ministry of Justice has much to say about the portabildiad and legal and regulatory changes that could require institutions like the garment or the mortgage. The Mexican experience is illustrative.
Since the mid of the year 2014, is operating in Mexico a system allowing portability through change in the creditor via a simple notarial scoring marginally in the original inscription while maintaining the guarantees and the rest of the conditions of the original script.
In the case of Mexico, identified the financial institution that gives more favourable credit terms, the debtor shall request the original Bank a “statement for surrogacy purposes”, which must be issued within a period of fifteen calendar days and if it does not occurs, the person concerned may attend the CONDUSEF (National Commission for the protection and defense of users of financial services) to work with this application.
This “State of account for the purposes of subrogation” is essential for the operation and once the person concerned has it, submit the same to the Bank which gives you more favorable conditions and the seller will pay the balance of the credit to the original Bank and mortgage credit will be transferred.
Under this system, the Association of banks of Mexico (ABM), reported that, during the year 2016, took place about 26 thousand transfers of mortgages from one bank to another and a few 8 mil in 2017.
It is expected to soon know the positions of the Ministry of Justice on the subject which will be the necessary correlative to the initiative which leads today the Ministry of finance and the Superintendency of banks Joaquin Morales
Department of law Economic
University of Chile

Original source in Spanish