The Shanghai branch of the China Banking Regulatory Commission (CBRC) has ordered banks to obey rules on mortgages and lending, Bloomberg reported. In an emailed statement, the CBRC’s Shanghai branch said down payments on second homes could not be lowered below a minimum of 40% of the price for any reason, and that banks should prevent mortgage fraud. The email, another reflection of the CBRC’s wariness about rapid growth in lending, came as Shanghai banks had US$95.6 billion in outstanding real estate loans by the end of June, up by US$5.4 billion from June 2008. Banks advanced US$1.9 billion in personal mortgages in June, a new record.
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