CIBIL and NHB are making active efforts to reduce frauds related to home loans. The two entities have decided to set up a central registry of mortgaged houses. One of the major reasons for rising number of bad loans was frauds wherein the borrower availed the loan using false documents.
The first mortgage repository has been launched by CIBIL and NHB on Thursday.
The database consists data about 6 lakh borrower accounts taken from 25 commercial banks as well as housing finance companies (HFCs). This database consists of data about major lot of loan accounts in the country.
As per NHB Chairman S Sridhar, the act has been taken to improvise the infrastructure finance market in the country.
As the home loan market evolves, there is a need to create appropriate infrastructure," he said.