Italian Mortgage Proposals

MILAN (Thomson Financial) – Italy’s economy minister Giulio Tremonti said the government wants house owners to be able to freely switch their mortgage providers at no cost.

Presenting the agreement with the Italian banking association for the renegotiation of mortgages, Tremonti said the government will take steps to make sure that there is ‘free switchability’ of mortgages.

Earlier Tuesday Italy’s antitrust authority said house owners should be able to switch mortgage providers without incurring any cost.

MILAN, May 27 (Reuters) – Moody’s will assess potential structural risks for Italian mortgage-backed securitisations posed by an agreement on mortgages between the government and banks, the agency’s general manager for Italy Alex Cataldo said on Tuesday.

Under the terms of the accord, borrowers will be able to ask banks to turn variable-rate mortgages into fixed-rate ones.

Rising interest rates have increased mortgage payments for many low-income Italian families. Cataldo said the agreement had a positive impact because it could help some borrowers stave off a potential default.

"On the other hand, we need to assess the impact on the maturity and the excess spread of each deal," Cataldo said. The excess spread represents the net interest payments from securitised assets after all payables and expenses are covered. According to Fitch Ratings, giving borrowers the right to renegotiate their home loans may hurt residential mortgage-backed securities (RMBS).

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (, he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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