Major Banks to Partially Suspend Non-Face-to-Face Mortgage Loans from Month-End... Reasons Explained

Due to the Introduction of the New Registration System

Some commercial banks will suspend non-face-to-face home purchase loans. This is because the court's introduction of a new registration system has increased the likelihood that buyers and sellers will conduct ownership transfer and mortgage registration in person.

According to the financial sector on the 10th, NH Nonghyup Bank will temporarily suspend the handling of purchase loans scheduled after the 31st. It will consider resuming after system improvements. Woori Bank has also stopped handling non-face-to-face home mortgage loans. Shinhan Bank and Hana Bank plan to inform non-face-to-face home mortgage loan customers that a visit to a branch may be required. KB Kookmin Bank also plans to organize precautions and notify customers soon.

The reason some banks have suspended non-face-to-face home mortgage loan handling is due to the future registration system introduced by the court starting on the 31st. With the system introduction, ownership transfer registration and mortgage registration required during the non-face-to-face home mortgage loan process must be unified into either an online or offline method. In particular, mortgage registration is problematic.

Since 2018 until June of this year, a total of 14,426 ATMs have been removed from banks over approximately six years. On the 24th, ATMs from commercial banks are installed on a street in Seoul. Banks are rapidly withdrawing ATMs, citing maintenance costs such as ATM management and heating and cooling expenses. Photo by Yongjun Cho jun21@

Currently, real estate buyers apply for non-face-to-face home mortgage loans through the bank's application (app), submit documents, and proceed with mortgage registration via electronic signature. After loan screening is completed, when paying the balance, they follow the ownership transfer registration procedure with the help of a legal scrivener. Since mortgage registration was electronically signed in advance, there was no need to visit a branch.

However, in the future, when executing non-face-to-face home mortgage loans, if the buyer and the bank proceed with mortgage registration electronically, the seller must also perform ownership transfer registration electronically. This creates a difficulty where the bank must request electronic signatures not only from the buyer but also from the seller.

Internet banks that operate home mortgage loans exclusively non-face-to-face are also busy preparing for the system introduction. Since KakaoBank and K Bank do not have offline branches, it is difficult to supplement the lacking tasks. If the seller refuses electronic registration, methods such as obtaining power of attorney separately from the seller and buyer through a legal scrivener and proceeding with registration face-to-face are being discussed.