Suruga Bank restarts investment lending
According to several real estate companies, Suruga Bank has restarted lending on investment properties. Two years have passed since the bank found itself at the center of questionable lending schemes that saw it providing finance to over 1,200 investors in a wide-spread share house investment scam. The scandal saw the bank slapped with a six month ban on investment lending by the Financial Services Agency.
Agency to call in fraudulently obtained Flat35 home loans
The Japan Housing Finance Agency has begun calling in Flat35-type loans that were fraudulently obtained by investors. These home loans are designed for owner-occupiers, not investors, offering borrowers a low, fixed-rate mortgage over the duration of the loan.
Another real estate company facing mortgage fraud allegations
The Nikkei Shimbun newspaper broke the story of yet another real estate company that is alleged to have been signing up buyers for home loans on investment properties. The news caused the company's share price to plummet by as much as a third in the week following the news report.
Suruga searches for solution to share house scandal
Some sharehouse investment scam victims may soon be let off the hook if the bank at the center of the scandal gets its way. Suruga Bank is allegedly considering a proposal whereby borrowers could have their loans cleared if they return their mortgaged properties to the bank.