Mexico legislator proposes faster release of paid mortgages

Mexican Deputy Yericó Abramo Masso of the PRI has introduced a legislative initiative to reform Article 2941 of the Federal Civil Code. The proposal aims to expedite the release of mortgage credits once they have been fully paid.

The initiative proposes a strict thirty-day limit for financial institutions to issue mortgage release instructions and present them to a Notary Public or the Public Registry of Property following the final payment. To ensure compliance, the proposal suggests penalizing banks with 100 UMAS for each day of delay. Additionally, banks would be required to provide users with compensation equal to one percent of the total credit value for every month of delay.

Under this proposal, the National Banking and Securities Commission could temporarily suspend a bank's authority to issue housing credits if they fail to comply. Abramo Masso noted that thousands of credits remain listed as active despite being paid, which complicates the legal transfer of properties.