HOFINET | Housing Finance Information Network

Housing Finance Policy

PDF featuring variable definitions

A. Legal and Regulatory Framework

A.1 Legal and Regulatory Framework

Variable	End of 2016	End of 2015	Sources	Var ID
Basis of the legal system: Civil, Common, Islamic, Other? (Describe)	Civil	Civil	Country Editor	A.1.1
Are there specific laws that deal with mortgages?	Yes	Yes	Country Editor	A.1.2
Registration/Transfer of titles:				A.1.3
Does the law clearly define different types of property rights?	Yes	Yes	Country Editor	A.1.3.1
Are property rights easily transferable?	Yes	Yes	Country Editor	A.1.3.2
Identify barriers to the registration/ transfer of property title.	High % of properies with misspecification of titles.	High % of properties with misspecification of titles	Country Editor	A.1.3.3
Typical number of days needed for the transfer of title	16	16 days	WDI	A.1.3.4
Can liens be effectively enforced?	Yes	Yes	Country Editor	A.1.4
Number of months until lender acquires the property in case of foreclosure on a single-family residential property?	41	41 months	Country Editor	A.1.4.1
Cost of foreclosure process as a percentage of the value of a typical loan?	6%	6%	Country Editor	A.1.4.2
Main causes of inefficiencies (legal, judiciary, administrative, cultural, etc.)	The main sources of inefficiencies come from judiciary and administrative actions, it is not about the law, it is about law execution.	The main sources of inefficiencies come from judiciary and administrative actions, it is not about the law, it is about law execution	Country Editor	A.1.4.3
Are there legal constraints on the types of mortgage products that are permitted?	Yes	Yes	Country Editor	A.1.5
Are there legal constraints on mortgage features?	Yes	Yes	Country Editor	A.1.6
Interest rate caps	Yes	Yes	Country Editor	A.1.6.1
Loan-to-Value cap	Yes	Yes	Country Editor	A.1.6.2
Payment-to-Income maximum	Yes	Yes	Country Editor	A.1.6.3
Other		Not available	Author's Research	A.1.6.4
Are there consumer rights for mortgage lending?	Yes	Not available	Country Editor	A.1.7
Are there disclosure requirements for mortgage lending?	Yes	Yes	Country Editor	A.1.8
Is there specialized legislation covering:				A.1.9
Issuance of covered mortgage bonds	Yes	Yes	Country Editor	A.1.9.1
Issuance of RMBS		Not available		A.1.9.2

B. Housing Finance Subsidies

B.1 Subsidies to Housing Finance Institutions

Variable	End of 2016	End of 2015	Sources	Var ID
Are there subsidized funding sources for mortgage lenders?	Yes	Yes	Country Editor	B.1.1
Special government lines of credit	Yes	Yes	Country Editor	B.1.1.1
Government supported liquidity facility	No	No	Country Editor	B.1.1.2
Labor or other tax funds for mortgage lending	Yes	Yes	Country Editor	B.1.1.3
Tax breaks on mortgage bonds or RMBS	No	No	Country Editor	B.1.1.4
Loss and/or cash flow guarantees for RMBS	Yes	Yes	Country Editor	B.1.1.5
Other	No	No	Country Editor	B.1.1.6
Is the lending side of the housing finance system subsidized?	Yes	Yes	Country Editor	B.1.2
Shared credit risk through public/private mortgage insurance	Yes	Yes	Country Editor	B.1.2.1
Guarantees for mortgage loans	Yes	Yes	Country Editor	B.1.2.2
Other	No	No	Country Editor	B.1.2.3

B.2 Subsidies to Households

Variable	End of 2016	End of 2015	Sources	Var ID
Are there subsidies to households on housing finance?	Yes	Yes	Country Editor	B.2.1
Interest rate subsidies by special government funds	Yes	Yes	Country Editor	B.2.1.1
Buy-down of monthly/interest payments	Yes	Yes	Country Editor	B.2.1.2
Down-payment subsidies	Yes	Yes	Country Editor	B.2.1.3
Subsidies to savings for mortgage loans	No	No	Country Editor	B.2.1.4
Mortgage interest deductibility from income tax	Yes	Yes	Country Editor	B.2.1.5
Other	Not available	Not available		B.2.1.6
Reach of subsidies in 2.1.1 to 2.1.4 ?				B.2.2
What is the highest income decile targeted?	80 decile	8 decile	Country Editor	B.2.2.1
What is the lowest income decile targeted?	1 decile	1 decile	Country Editor	B.2.2.2
What proportion of loans is affected by the subsidies in 2.1.1 to 2.1.4?	17%	17%	Country Editor	B.2.2.3
What proportion of loans on main residences is affected by the mortgage interest deductability in 2.1.5?	20%	20%	Country Editor	B.2.3

C. Taxation

Variable	End of 2016	End of 2015	Sources	Var ID
What taxes apply to Residential Real Estate?				C.1
Tax on property (home-owners)	Yes	Yes	Country Editor	C.1.1
Property transaction taxes (purchase/selling)	Yes	Yes	Country Editor	C.1.2
Mortgage transaction taxes	Yes	Yes	Country Editor	C.1.3
Tax on mortgage interest pmts	No	No	Country Editor	C.1.4
Tax on capital gains on property	Yes	Yes	Country Editor	C.1.5
Other		No	Author Research	C.1.6
Are there tax benefits on rental properties?		Yes	Author Research - there is a figure in the 820 law of 2003 that fixes tax benefits for societies specialized in housing leasing or SEA (Sociedades Especiales en Arrendamiento) in Spanish. In practice, the legal figure exists but the market hasn't created a successful business model.	C.2
Describe tax benefits (if any) from C.1.2		Not available	Author Research	C.2.1