Last Wednesday, the CMS of Judicial Recovery was held, an annual meeting that gathers together a large a diverse number of the professionals of this sector: financial institutions, investment funds, servicers, court agents and, of course, companies like LEXER, specialised in the management of proceedings focused on judicial recovery.
The meeting was held through discussions of the most important issues for the sector. As a summary we can highlight the following:
– NEW REGULATORY LAW ON REAL ESTATE CREDIT CONTRACTS: the key issue was the recent approval of the Regulatory Law on Real Estate Credit Contracts which will come into force on 16 June. Different aspects of this law were addressed, from the new framework for mortgage loan contracts, including the new solvency requirements and emphasising the new transparency regulations, to perhaps the most relevant point for the sector: the new regulation on early maturity. Ana Enguix, director of the legal department of LEXER, entered fully into this issue, both with regard to contracts signed after the entry into force of the new law, as well as those signed previously.
– ANALYSIS OF THE JURISPRUDENCE ON ABUSIVE CLAUSES: Taking advantage of the annual meeting, a review and forecast of the jurisprudence on abusive clauses was made, with all the changes that have occurred and those that are expected. Among others, the subject of personal income tax, where the resolution of the preliminary question raised by JPI 38 of Barcelona is awaited and the conclusions of the Advocate General have been delayed to the month of September. The early termination clause is also pending, since, once the preliminary ruling question has been resolved by the ECJ, which was raised by the Supreme Court, the latter Court has still to give a ruling. With regard to the surety clause, there have been significant developments in case law to protect the guarantor who has no functional links with secured companies.
– CENTRALISATION OF CREDIT MANAGEMENT: in this debate, functional aspects of the mass management of procedures were analysed, both in terms of the operational costs involved in the management of proceedings and in the aid of new technologies to simplify and reduce the costs of management processes. At LEXER we are aware of this, as we have the JUMP tool, a state-of-the-art platform that allows for improved efficiency in management processes.
– PROCESS AND LEGAL PORTFOLIO PURCHASES: On this occasion, the debate derived from the vicissitudes involved in the purchase of portfolios was addressed. The most recurrent arguments were the disparity of criteria depending on each court, which leads to legal uncertainty for the investor, since in identical situations he cannot obtain a homogeneous judicial response, which fluctuates depending on each judicial jurisdiction and even on each court.
–WORKSHOPS: To conclude the event, the conclusions of the Workshops that were worked on during the breaks of the event were presented. We would like to highlight the workshop organised by LEXER, where, in the case of a mortgage loan signed by a merchant and guaranteed by various guarantors of different qualities, we analysed from various perspectives the possible demand for the nullity of the CGC, the viability of this demand and its impact on a foreclosure procedure. We also review the new concept of guarantor-consumer in accordance with the recent jurisprudence of the ECJ and the relationship with the new LCI.