ministry of housing & urban-rural development, ministry of finance and people’s bank of china on practically increasing hpf use efficiency
jj no. 150-2015
to all provincial, autonomous regions’ and munucipalities’ housing & urban-rural development departments (construction commissions) and finance departments (bureaus), xinjiang production and construction corps’ construction bureau and finance department, people’s bank of china’s branches, operational management divisions, provincial city (capital city) level general sub-branches and sub-provincial city level general sub-branches, and housing provident fund management committees and centers of the municipalities’ and xinjiang production and construction corps:
to execute the resolutions of the national teleconference on enhancing housing provident fund management, relevant policies pertaining to housing provident fund use have been adjusted in various regions of the country this year, in accordance with the mandates set out in notice of pbc and cbrc on further improving financial services for real estate sector (jj no. 148-2014), notice on easing criteria on rent oriented hpf withdrawal (jj no. 19-2015) and notice on relevant issues concerning personal home loan policies (bi no. 98-2015), so that the procedures for handling services have been streamlined and fund use efficiency has been improved. in certain regions, however, criteria for housing provident fund use remain somewhat harsh, with complicated handling procedures and a fairly large figure of aggregate fund account balance inhibiting the proper functioning of the housing provident fund system. therefore, we hereby notify of the following in accordance with the state council’s requirements for quickening the pace of supervision over execution of policies on housing provident fund use in an effort to practically increase housing provident fund use efficiency:
1. increase actual loan amount: those cities comprising subordinate districts with a housing provident fund use rate lower than 85% as of end of august 2015 are required to comprehensively take account of the price level of the local property market, the demand for loans and the borrowers’ ability to repay debts, in a move to increase the actual housing provident fund home loan amount, and resort to measures such as reining in the upper limit for the ratio of the monthly repayment amount to the monthly income within the range of 50% to 60% on the premise that the borrowers’ essential living expenses are set aside, extending loan maturity to five years after the prescribed mandatory retirement age (retirement age plus five years) and allowing a maximum period of 30 years for loan repayment, and advancing loan repayment oriented housing provident fund withdrawal by means of deduction from personal provident fund accounts on a monthly basis.
2 cities compring subordinate districts need to make use of the fund on a consolidated basis. in a city comprising subordinate districts, the housing provident fund center and the subcenter(s) should consolidate fund use for loans as well as policies on housing provident fund withdrawals and loans. provided that the housing management center and the sub-center(s) in the same city should be lack of fund for loaning, the paying employee should be allowed to apply to the housing provident fund management agency in the same city for a home loan.
3. tap loan fund sources. cities with favorable conditions should actively advance housing provident fund home loan asset securitization in an effort to make good use of housing provident fund loan assets.
4. comprehensively push forward the service for nonlocal home loans. a paying employee may apply for a home loan to the housing provident fund management center of the city where he or she is buying a home. the housing provident fund management centers of the city where the home purchasing employee is working and the city where the employee is applying for a loan to buy a home should closely cooperate to issue and confirm documents such as the housing provident fund payment proof and handle loaning procedures in a timely manner. relevant concrete measures shall be instituted by ministry of housing & urban-rural development.
5. streamline the service requirements for essential documents review. employee income proof can be waived on the premise of the concensus that the housing provident fund home loan applicant’s monthly income can be reckoned based on the monthly housing provident fund payment amount of the applicant.
6. improve management efficiency and service standards. all housing provident fund management centers are required to optimize their staffing, increase the manpower of varous service outlets and their remuneration, and take good advantage of the service outlets of the entrusted banks so as to facilitate paying employees’ housing provident fund withdrawal and loan handling in the vicinity.
7. speed up the pace for revamp and upgrade of the information system. housing provident fund management centers in various regions are required to speed up the pace for revamp and upgrade of the information system in alignment with policy adjustment and the demand for process optimization, build a comprehensive service platform comprising hotline 12329, sms application, spf wechat account, mobile app and cyberspace service center, advance online service measures, and provide efficient and convenient services to paying employees.
8. build the accountability and assessment system. housing provident fund regulatory departments at various levels are required to ramp up assessment and inspection over the services of housing provident fund management centers in their respective cities. the key indexes of assessment should comprise housing provident fund use rate or housing provident fund home loan market share. the results of such assessment should be reported to the people’s government of the cities with subordinate districts, and shall be taken as indispensable references for performance appraisal of the housing provident fund management centers’ heads. as for those cities having a low housing provident fund use rate or housing provident fund home loan market share, the heads of the housing provident fund management centers chiefly held responsible shall be summoned for accountability assessment.
the notice shall become effective as of 8 october 2015.
ministry of housing & urban-rural development of the people’s republic of china
ministry of finance of the people’s republic of china
people’s bank of china
29 september 2015
