HOFINET | Housing Finance Information Network

The Housing Finance System

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A. Primary Housing Finance Market

A.1 Industry Structure and Performance

Variable	End of 2015	End of 2014	End of 2013	Sources	Var ID
Number of firms originating and funding mortgage loans	4.0	6.00	5.00	CAHF	A.1.1
Types of originating lenders/market share:					A.1.2
Universal/ commercial banks	100% of total	94% of total	94% of total	CAHF	A.1.2.1
Non-depository financial institutions specialized in housing finance		5% of total	5% of total	CAHF	A.1.2.3
General non-depository financial institutions		1% of total	1% of total	CAHF	A.1.2.4
Identify the 3 largest loan originating lenders	NBS, National Bank, Standard Bank	NBS, National Bank, Standard Bank	NBS, National Bank, Standard Bank	CAHF	A.1.3
Are there (quasi) public mortgage lenders:		No	No	Meeting with Bank Supervision branch of Reserve Bank - Malawi;2015 Housing Finance in Africa Yearbook, Malawi country page	A.1.4
Universal/ commercial banks		No	No	Meeting with Bank Supervision branch of Reserve Bank - Malawi	A.1.4.1
Other depository institutions (savings and loans/mutual savings and credit institutions)		No	No	Meeting with Bank Supervision branch of Reserve Bank - Malawi	A.1.4.2
Non-depository financial institutions specialized in housing finance		No	No	Meeting with Bank Supervision branch of Reserve Bank - Malawi	A.1.4.3
General non-depository financial institutions		No	No	Meeting with Bank Supervision branch of Reserve Bank - Malawi	A.1.4.4
Others (e.g. insurance co, pension funds, labor tax funds)		No	No	Meeting with Bank Supervision branch of Reserve Bank - Malawi	A.1.4.5
Typical lending spreads for mortgages		23.8%		Country Editor	A.1.5
Level of Non-Performing Mortgage Loans (90 days or more past due):					A.1.6
as a % of # of loans		Not available	Not available	Country Editor	A.1.6.1
as a % of outstanding loan amount		17.8%	11.4%	Bank Supervision branch of Reserve Bank	A.1.6.2
Average 1997-2007					A.1.7
as a % of # of loans		Not available	Not available	Country Editor	A.1.7.1
as a % of outstanding loan amount		Not available	Not available	Country Editor	A.1.7.2
Lowest decile of the income distribution served by the dominant mortgage lenders		Not available	Not available	Country Editor	A.1.8

A.2 Size of Mortgage Finance Sector

Variable	End of 2015	End of 2014	End of 2013	Sources	Var ID
Total amount of home mortgage loans outstanding at the end of year in millions of USD:		54 USD (millions)	34 USD (millions)	Bank Supervision branch of Reserve Bank	A.2.1
Total amount of home mortgage loans outstanding at the end of year as % of GDP (current)		1.49%	1.08%	Bank Supervision branch of Reserve Bank	A.2.1.1
and as % of all credits outstanding		Not available	Not available	Country Editor	A.2.1.2
Total amount of home mortgages made in calendar year in millions of USD	15.03 USD (millions)			Reserve Bank of Malawi	A.2.3

A.3 Housing Finance Products

Variable	End of 2015	Sources	Var ID
Mortgage products as % of all mortgages (approx.) in local currency:			A.3.1
Most prevalent type of foreign currency mortgage used:			A.3.3
Most frequent interest rates on fully amortizing:			A.3.4
Typical lender fees associated with mortgage origination:			A.3.6
Typical third party fees associated with mortgage origination:			A.3.7
Loan-to-Value (LTV) on first mortgage:			A.3.8
Mortgage pmt-to-income ratio			A.3.10
Maximum pmt-to-income ratio (HH income)	30%	Reserve Bank of Malawi	A.3.10.1

A.4 Lending and Servicing Process

Variable	End of 2015	End of 2014	End of 2013	Sources	Var ID
Which institutions define underwriting rules?					A.4.2

A.5 Credit Risk Assessment

Variable	End of 2014	End of 2013	Sources	Var ID
Do credit bureaus exist?	Yes	Yes	Meeting with credit bureau	A.5.2
Are there legal/regulatory constraints to gaining access to credit information?	Yes	Yes	Meeting with credit bureau	A.5.2.1
Is mortgage default insurance available?	No	No	Meetings with Banks and Insurance Companies	A.5.3
When did it begin operating?	Non-applicable	Non-applicable		A.5.3.1
What is the typical MI product?	Non-applicable	Non-applicable	Meetings with Banks and Insurance Companies	A.5.3.2
Number of private mortgage insurers	4	4	Meetings with Banks and Insurance Companies	A.5.3.3
Are credit guarantee systems used?	Yes	Yes	Meetings with Banks and Insurance Companies	A.5.4
Is there public sponsored MI / guarantee?	No	No	Meetings with Banks and Insurance Companies	A.5.5
What share of total annual mortgage production is insured/guaranteed?	100%	100%	Meetings with Banks and Insurance Companies	A.5.7

B. Funding Sources for Mortgages and the Secondary Mortgage Market

Variable	End of 2014	End of 2013	Sources	Var ID
What are the main funding sources for mortgages?				B.1
Retail funding (deposits/other)	primary	primary	Meeting with Bank Supervision branch of Reserve Bank - Malawi and Reserve Bank Annual Reports	B.1.1
Wholesale funding: loans from other banks or corporations	tertiary	tertiary	Meeting with Bank Supervision branch of Reserve Bank - Malawi and Reserve Bank Annual Reports	B.1.2
Funding through mortgage bonds	Non-applicable	Non-applicable	Meeting with Bank Supervision branch of Reserve Bank - Malawi	B.1.3
Funding through securitization of mortgages	Non-applicable	Non-applicable	Meeting with Bank Supervision branch of Reserve Bank - Malawi	B.1.4
Other	secondary	secondary	Meeting with Bank Supervision branch of Reserve Bank - Malawi and Reserve Bank Annual Reports	B.1.5

C. Housing Microfinance

Variable	End of 2015	End of 2014	End of 2013	Sources	Var ID
Are non-collateralized housing micro-finance loans offered?	Yes	Yes	Yes	Global Property Guide	C.1
Types of lenders operating in the housing micro-finance (HMF) sector:					C.2
Commercial banks		No	No	Meeting with Microfinance branch of Reserve Bank - Malawi	C.2.1
Specialized non-depository MFIs		Yes	Yes	Meeting with Microfinance branch of Reserve Bank - Malawi	C.2.2
NGOs		Yes	Yes	Meeting with Microfinance branch of Reserve Bank - Malawi	C.2.3
Others		Yes	Yes	Meeting with Microfinance branch of Reserve Bank - Malawi	C.2.4
None		No	No	Meeting with Microfinance branch of Reserve Bank - Malawi	C.2.5
Typical lending spreads in HMF		Not available	Not available	Country Editor	C.3
Level of NPLs (>90 days past due) in HMF					C.4
as a % of loans		Not available	Not available	Country Editor	C.4.1
as a % of outstanding loan amount		Not available	Not available	Country Editor	C.4.2
Are non-collateralized but secured housing finance products offered (e.g. secured by pension or insurance savings)		No	No	Meeting with Microfinance branch of Reserve Bank - Malawi	C.5
Lowest income decile served with all non-collateralized housing lending products		Not available	Not available	Country Editor	C.6