Spain's government is drafting a royal decree-law, known informally as the "Maricarmen decree," to curb the activities of investment funds that acquire non-performing mortgage portfolios and properties below market value. The draft, dated September 28, 2026, stipulates that until December 31, 2028, entities buying real estate or distressed mortgage loans at significantly discounted prices will be affected if their actions are deemed to circumvent housing's social function or maximize profits through disproportionate rents or non-residential use. This initiative follows the highly publicized eviction of Maricarmen, an 87-year-old woman in a vulnerable situation, by the company Urbagestión.
The proposed decree aims to protect vulnerable individuals from eviction. For ongoing eviction processes where a fund is the plaintiff, the court will suspend the proceedings, even if a judgment has already been rendered but the eviction has not yet occurred. Furthermore, the decree introduces an indirect mechanism concerning portfolio sales: if a bank sells a block of mortgage loans on a primary residence, the debtor will have the right to extinguish their debt by repaying the fund only the price it paid for that specific credit, plus legal interest and justified transfer expenses. This right also applies to individual transfers if the buyer is a legal entity regularly engaged in credit acquisition.
The financial sector has expressed concerns about the potential impact of this measure. They argue that restricting properties from being used for investment or rental purposes will cause their value to drop, potentially affecting bank balance sheets and leading to unforeseen provisions. There are also worries that the decree could conflict with European authorities' efforts to reduce legal uncertainty and might prompt intervention from the European Central Bank. The sector believes that the draft was prepared without fully assessing these financial implications and hopes that less interventionist government partners, particularly Junts, will push for modifications to the text.
