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Europe and Central Asia

The Housing Finance System

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A. Primary Housing Finance Market
B. Funding Sources for Mortgages and the Secondary Mortgage Market
C. Housing Microfinance

A. Primary Housing Finance Market

A.1 Industry Structure and Performance

Variable	End of 2018	End of 2017	End of 2016	Sources	Var ID
Number of firms originating and funding mortgage loans	175	171	169	Norges Bank Financial Stability Report 2018	A.1.1
Types of originating lenders/market share:					A.1.2
Universal/ commercial banks	57% of total	56% of total	56.8% of total	Norges Bank Financial Stability Report 2018	A.1.2.1
Other depository institutions (savings and loans/mutual savings and credit institutions)	43% of total	43% of total	43.2% of total	Norges Bank Financial Stability Report 2018	A.1.2.2
Identify the 3 largest loan originating lenders	DNB, SpareBank 1 Alliance, Nordea	DNB, Nordea Bank, SpareBank 1 Alliance	DNB ASA, Nordea Bank Norge ASA and Kommunalbanken AS	Norges Bank	A.1.3
Are there (quasi) public mortgage lenders:	Yes	Yes	Yes	Norwegian State Housing Bank	A.1.4
Non-depository financial institutions specialized in housing finance	Yes	Yes	Yes	Norwegian State Housing Bank	A.1.4.3
Typical lending spreads for mortgages	Not available	Not available	Not available		A.1.5
Level of Non-Performing Mortgage Loans (90 days or more past due):					A.1.6
as a % of outstanding loan amount	.75%	1%	1.18%	World Bank	A.1.6.2
Average 1997-2007					A.1.7

A.2 Size of Mortgage Finance Sector

Variable	End of 2018	End of 2017	End of 2016	Sources	Var ID
Total amount of home mortgage loans outstanding at the end of year in millions of USD:	321,032.25 USD (millions)	323,992.09 USD (millions)	289,094.3 USD (millions)	HypoStat	A.2.1
Total amount of home mortgage loans outstanding at the end of year as % of GDP (current)	73.94%	81.34%	78.38%	WEO and Statistics Norway	A.2.1.1
and as % of all credits outstanding	Not available	Not available	Not available		A.2.1.2

A.3 Housing Finance Products

Variable	End of 2018	End of 2017	End of 2016	Sources	Var ID
Mortgage products as % of all mortgages (approx.) in local currency:					A.3.1
Variable rate/discretionary	94%	94%	92%	HypoStat	A.3.1.3
Most prevalent type of foreign currency mortgage used:					A.3.3
Most frequent interest rates on fully amortizing:					A.3.4
10 year fixed rate mortgage	2.3%			SpareBank	A.3.4.1
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
Maximum LTV	85	85	85	Norway Ministry of Finance	A.3.8.1
Maximum term over which pmt is calculated?	30 years	30 years	30 years	DNB	A.3.9
Mortgage pmt-to-income ratio					A.3.10

A.4 Lending and Servicing Process

Variable	End of 2018	End of 2017	End of 2016	Sources	Var ID
Does the mortgage industry use standard principles/guidelines for underwriting?	Yes	Yes	Yes	Norway Ministry of Finance	A.4.1
Which institutions define underwriting rules?					A.4.2
Central Bank/Ministry of Finance	No	No	No	The Financial Supervisory Authority of Norway	A.4.2.1
Secondary market facility	No	No	No	The Financial Supervisory Authority of Norway	A.4.2.2
Major Lender	No	No	No	The Financial Supervisory Authority of Norway	A.4.2.3
Other	Yes	Yes	Yes	Norway Ministry of Finance	A.4.2.4
Are loan originations conducted by others than employees of lenders?	No	No	No	Research	A.4.3

A.5 Credit Risk Assessment

Variable	End of 2018	End of 2017	End of 2016	Sources	Var ID
Do credit bureaus exist?	Yes	Yes	Yes	Doing Business Norway	A.5.2
Are there legal/regulatory constraints to gaining access to credit information?	No	No	No	Doing Business Norway	A.5.2.1
Are credit guarantee systems used?	Yes	Yes	Yes	Norges Bank	A.5.4

B. Funding Sources for Mortgages and the Secondary Mortgage Market

Variable	End of 2018	End of 2017	End of 2016	Sources	Var ID
What are the main funding sources for mortgages?					B.1
Retail funding (deposits/other)	Primary	Primary	Primary	Norges Bank	B.1.1
Wholesale funding: loans from other banks or corporations	Tertiary	Tertiary	Tertiary	Norges Bank	B.1.2
Funding through mortgage bonds	Secondary	Secondary	Secondary	Norges Bank	B.1.3
Funding through securitization of mortgages	Non-applicable	Non-applicable	Non-applicable	Norges Bank	B.1.4
Other	Not available	Not available	Not available		B.1.5

C. Housing Microfinance

Variable	End of 2018	End of 2017	End of 2016	Sources	Var ID
Types of lenders operating in the housing micro-finance (HMF) sector:					C.2
Level of NPLs (>90 days past due) in HMF					C.4

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