Mexico housing mortgage release initiatives

Mexican housing agencies have begun implementing measures to provide free property deed processing and mortgage cancellations for citizens who have completed their housing credit payments. In Michoacán, FOVISSSTE signed an agreement to allow families with a ‘Constancia de Finiquito’ to undergo the mortgage release process at no cost. Similarly, in Sonora, over 500 families in Hermosillo received free Infonavit mortgage cancellations, an initiative intended to provide legal certainty by eliminating costs that previously ranged between 16,000 and 20,000 pesos.

Following these administrative actions, Deputy Yericó Abramo Masso of the PRI introduced a legislative initiative to reform Article 2941 of the Federal Civil Code. The proposal seeks to expedite the release of mortgage credits by imposing a strict thirty-day limit for financial institutions to issue release instructions. To enforce compliance, the initiative suggests penalizing banks with 100 UMAS for each day of delay and requiring compensation to users equal to one percent of the total credit value for every month of delay. The proposal also grants the National Banking and Securities Commission the authority to temporarily suspend a bank’s ability to issue housing credits for non-compliance.