When preparing a mortgage file, the financial organizations that intervene ask for various guarantees that will allow them to recover their funds in case of default of the borrower.
What is a bonding company?
In order to reduce the guarantee costs, the banks propose to benefit from the guarantee of a specialized organization or a mutual. In order to benefit from this guarantee, the loan file must correspond to certain qualitative criteria, particularly in terms of the amount of the contribution or the rate of indebtedness.
The selected organization is thus a guarantor and will repay the loan to the bank in case of default of the borrower. Attention, the surety will then have the opportunity to turn against the borrower to obtain the refund of the sums paid.
Examples of bonding companies:
Guarantee Housing credit
Depositary Mutual Official
Can a natural person guarantee a loan?
Article 2288 of the Civil Code thus defines the bond: “The person who becomes surety of an obligation submits to the creditor to fulfill this obligation, if the debtor does not satisfy himself. “.
This personal security may be limited in time and may relate only to a portion of the sum lent.
In the case of a “fragile” file (often with young borrowers), it provides the lending institution with an additional guarantee regarding the payment of installments.
What are the duties of the bank towards the guarantee of a loan?
In order for the guarantor to be aware of the situation, the law imposes on the creditor an obligation to inform the situation of the current loan and the debtor.
The Consumer Code is very strict as to the information that must be delivered by the creditor to the surety. It is clear from Article L.341-6 that the guarantor must be informed of the “amount of principal and the interest, fees, costs and accessories remaining as of December 31 of the preceding year in respect of the guaranteed loan”. , as well as the end of this commitment. If the appointment is for an indefinite period, it recalls the right of dismissal at any time and the conditions under which it is exercised. Otherwise, the guarantor can not be held liable for the payment of penalties or interest for late payment due from the previous information until the date of communication of the new information. ”
In addition, the guarantor must be informed as soon as the debtor is unpaid if, however, article L. 333-4 provides, the latter may be included in the “[…] national file listing the information on Characterized payment incidents related to credits granted to natural persons for non-professional needs. This file is managed by the Banque de France, which alone is authorized to centralize this information “. This information must be sent to him in the month of the payment due if he is not regularized (article 341-1).