Over-Indebtedness and Mortgage Lending

52 Pages Posted: 1 Apr 2013

See all articles by Fernando Zunzunegui

Fernando Zunzunegui

Universidad Carlos III de Madrid - Faculty of Social Sciences and Law

Date Written: March 31, 2013


This article analyzes the over-indebtedness caused by irresponsible mortgage lending by credit institutions in Spain that have been exacerbated by the economic crisis, the falling value of the real estate market and rising unemployment. This creates the risk of social and financial exclusion of those who can't afford to pay their mortgages.

It is a multidisciplinary approach of the mortgage system that includes the customer's perspective involving the banking sector as well as the Bank of Spain in the solution to evictions. The paper suggests preventive and palliative measures that attempt to restore confidence in the banking system, strengthen the solvency of banks while enhancing the client protection.

Keywords: Over-indebtedness, Responsible Lending, Mortgages, Evictions, Client Protection

JEL Classification: K22, K42, G18, G24

Suggested Citation

Zunzunegui, Fernando, Over-Indebtedness and Mortgage Lending (March 31, 2013). Available at SSRN: https://ssrn.com/abstract=2242428 or http://dx.doi.org/10.2139/ssrn.2242428

Fernando Zunzunegui (Contact Author)

Universidad Carlos III de Madrid - Faculty of Social Sciences and Law ( email )

Getafe (Madrid), 28903

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