compulsory purchase mortgage insurance from the date on the implementation of the controversial Chinese Consumers Association has more than once suggested that the abolition of compulsory home insurance

lifting mandatory home insurance, property buyers will be free to choose whether or not to purchase, can save premium expenditures, also simplified the procedures for loans

loan program would be mandatory insurance, the practice started in 1998, the program has been questioned. Xiamen recently in the mortgage insurance, there have been breakthroughs in Xiamen Construction Bank's 11th officially announced that with immediate effect the purely self-insurance of personal property mortgage loans mandatory. In other words, in the future, customers in Xiamen Construction Bank's approach to real estate collateral for mortgage loans, will be free to choose whether or not to purchase mortgage insurance.

under construction firms, clients and in the purchase of property for the construction of the sexual self-mortgage loans can enjoy the benefits of this new initiative, including Yishoufang, secondary housing, housing loans and commercial space, but does not include Provident Fund loans and loan portfolios.

lifting mandatory home insurance, property buyers, both premium savings expenditures, and streamline the processing of loan procedures. Xiamen Construction Bank's housing finance and personal credit general manager Huang Hua says that to a 500,020-year mortgage, for example, if insurance at the base premium rates probably have to more than 7,000 yuan, if discounted, basic to more than 5,000 yuan, lifting mandatory home insurance customers can freely choose if they choose not guarantee, the cost can be saved.

As already running a mortgage insurance and loan customers of the answer is that the old policy implementation old customers, new customers implement new policies.

from 1998 to date, the Xiamen Construction Bank's total loans to individuals for housing loans more than 20 billion yuan, more than 100,000 customers, in Xiamen individual housing loans accounted for nearly half the market share. In the same industry to take the lead in abolishing the mandatory housing insurance, a minimum of one year's fee income will be reduced by more than 100 million, of the area were of the view that this is "to meet the needs of the market and customer demand." Xiamen Construction Bank's Vice-President introduced a National Bank also has a number of other provinces and cities of similar initiatives, it can consolidate the banking advantages, and is a market-oriented behaviour.

mortgage insurance which is officially entitled "personal housing mortgage comprehensive insurance", 1998 the central bank issued the "individual housing loans management approach", which states : "to the property as collateral, borrowers will be required to complete the contract before the housing loan insurance or a person on behalf of insurance procedures. "From then on, mortgage insurance establishes its compulsory insurance status. However, the compulsory purchase mortgage insurance from the date on the implementation of the controversial Chinese consumer associations have more than once recommended the abolition of compulsory home insurance recently, a number of other places in the country, nor at the mandatory housing insurance release from the voice.

was built after the lifting of the mandatory housing insurance, Xiamen offer housing loans to individuals other nine banks have indicated that they would pay close attention. Xiamen ICBC concerned clear that the main line was announced last October to apply for personal property collateral loans means customers can choose to buy property as collateral insurance, Xiamen ICBC is actively implementing office, will soon begin the actual operation.

Excerpted from the "China News" 2006.01.16 Mr.