Housing Finance in LAC: Evolution and Challenges

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The Objective of the TC is to provide funding for data collection and to sponsor original research on the development of housing finance markets in Latin American and the Caribbean as an input for the 2011 DIA. Among other issues this project will explore the following topics: 1. Data collection: a. Size and characteristics of mortgage finance markets in LAC (size, ownership ratio, interest rates, access, non performing loans, etc). b. Characteristics of suppliers of mortgage finance (specialized/non specialized; government sponsored / private) c. Characteristics of mortgage markets and mortgage contracts (mortgage equity withdrawal, refinancing, loan to value ratio, term, fixed vs floating rates, inflation indexed vs nominal) d. Characteristics of mortgage foreclosure procedures (duration, cost) e. Development of securitization (bonds, MBS) f. Main regulatory features concerning mortgage lending risks. 2. Country studies: The main objective of the country studies is to identify the binding constraints of housing finance markets development in the region. All studies must provide an overall assessment of these constraints and should focus on at least one of the following questions: a. What are the key regulatory issues guiding the development of mortgage lending and securitization? b. What is the role or the experience of the public sector providing subsidies for housing finance or for the development of institutions related with housing finance in promoting housing finance depth in the region? c. Have targeted credit policies or interest rate controls and subsidies worked to promote mortgage finance? d. What is the state of creditor rights protections and of judicial efficiency regarding housing finance in the region? e. How have microfinanciers specialized in housing lending fared in LAC during the past decade