Song Eonseok Proposes Protection for Ordinary Homebuyers Hurt by Unfair Lending Regulations

A wave of contract cancellations and financial losses for genuine lottery winners due to unannounced lending regulations
Amendment to the Housing Act to apply pre-regulation housing finance criteria to lottery winners

Song Eonseok, Floor Leader of the People Power Party (Gimcheon, North Gyeongsang), on the 6th introduced as the lead sponsor the "Partial Amendment to the Housing Act" aimed at preventing damage to genuine first-time homebuyers whose final mortgage loans are being blocked due to the Lee Jaemyung administration's tougher lending regulations introduced after they won housing subscription lotteries.

The current Housing Act stipulates procedures and standards for the supply, subscription, and sale of housing, but it lacks clear provisions to protect buyers who have already won subscription lotteries and signed sale contracts in cases where housing finance and lending criteria are changed after the lottery.

Song Eonseok, Floor Leader of the People Power Party (Gyeongbuk Gimcheon), who introduced the "Partial Amendment to the Housing Act" as lead sponsor / Kim Ihwan, Reporter

In this institutional vacuum, a serious problem has arisen: in October last year, the Lee Jaemyung administration, without prior notice, implemented strong regulations such as capping mortgage loan limits under the pretext of stabilizing housing prices, and even genuine end-users who had already won subscriptions and paid their down payments and interim payments are now finding their final mortgage loans blocked.

As a result, some buyers are being pushed to the brink of contract cancellation because they cannot secure the remaining balance, and the financial damage is becoming a reality as they are unable to recover the down payments and interim payments they have already paid.

In particular, critics point out that for genuine end-users in desperate need of housing stability, such as newlyweds and large families with multiple children, housing insecurity is being further aggravated, as they are effectively left with no other choice but to cancel their sales contracts due to lending regulations and even lose their eligibility to apply for housing subscriptions.

To address this, Floor Leader Song Eonseok introduced as the lead sponsor the "Partial Amendment to the Housing Act" that would "clearly stipulate that even if housing finance and lending systems are changed to less favorable terms than before, the housing finance and lending criteria in effect on the date of the resident recruitment announcement shall apply in cases where the subscription win was confirmed prior to the system change," thereby preventing unreasonable damage caused by government policy changes and restoring public trust in the housing supply system.

Floor Leader Song Eonseok stated, "Due to the Lee Jaemyung administration's lending regulations, opportunities for ordinary people without homes to purchase their own homes are disappearing, and they are even suffering financial losses," and stressed, "President Lee Jaemyung must properly recognize the people's dire reality and start by withdrawing the October 15 real estate measures."

He added, "We will do our utmost to swiftly pass the amendment to the Housing Act in order to protect ordinary people without homes who are being harmed by unreasonable government regulations."

This content was produced with the assistance of AI translation services.