The Housing Finance System

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      A. Primary Housing Finance Market

      A.1 Industry Structure and Performance
      VariableEnd of 2015End of 2014End of 2013SourcesVar ID
      Types of originating lenders/market share:A.1.2
      Level of Non-Performing Mortgage Loans (90 days or more past due):A.1.6
      Average 1997-2007 A.1.7
      A.2 Size of Mortgage Finance Sector
      VariableEnd of 2015End of 2014End of 2013SourcesVar ID
      Total amount of home mortgage loans outstanding at the end of year in millions of USD:18,113.55 USD (millions)13,271.78 USD (millions)9,521.09 USD (millions)A.2.1
      Total amount of home mortgage loans outstanding at the end of year as % of GDP (current)7.56%5.3%4.06%A.2.1.1
      and as % of all credits outstanding4.62%7.19%9.26%A.2.1.2
      A.3 Housing Finance Products
      VariableEnd of 2015End of 2014End of 2013SourcesVar 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
      Typical LTV at origination  75A.3.8.2
      Maximum term over which pmt is calculated? 30 years30 years30 yearsA.3.9
      Mortgage pmt-to-income ratio A.3.10
      Maximum pmt-to-income ratio (HH income)35%35%35%A.3.10.1
      Typical pmt-to-income ratio (Individual income)  25%A.3.10.4
      A.4 Lending and Servicing Process
      VariableEnd of 2015End of 2014End of 2013SourcesVar ID
      Does the mortgage industry use standard principles/guidelines for underwriting?YesYesYesA.4.1
      Which institutions define underwriting rules? A.4.2
      OtherYesYesYesA.4.2.4
      A.5 Credit Risk Assessment
      VariableEnd of 2015End of 2014End of 2013SourcesVar ID
      Do credit bureaus exist? YesYesYesA.5.2
      Are there legal/regulatory constraints to gaining access to credit information?NoNoNo
      Doing Business
      		A.5.2.1
      Is mortgage default insurance available? YesYesA.5.3
      Is there public sponsored MI / guarantee? YesYesA.5.5
      B. Funding Sources for Mortgages and the Secondary Mortgage Market
      VariableEnd of 2015End of 2014End of 2013SourcesVar ID
      What are the main funding sources for mortgages?B.1
      Retail funding (deposits/other)primaryprimaryprimaryB.1.1
      Other secondarysecondarysecondaryB.1.5
      C. Housing Microfinance
      VariableEnd of 2015End of 2014End of 2013SourcesVar ID
      Types of lenders operating in the housing micro-finance (HMF) sector:C.2
      Level of NPLs (>90 days past due) in HMFC.4
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      Notes: "Capital gains on real property are taxable in Venezuela according to progressive tax table rates… the gain may not be taxable if it results from the sale of the principal family residence, if the gain is reinvested in another principal home."
      Notes: "Capital gains on real property are taxable in Venezuela according to progressive tax table rates… the gain may not be taxable if it results from the sale of the principal family residence, if the gain is reinvested in another principal home."
      Notes: BANESCO is the country's largest bank by market share.
      Notes: Base Year
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Fund for Obligatory Savings for Housing (FAOV) consists of savings from individuals and employers (3% of monthly salary of employees; 2% paid by employer and 1% by worker). These funds allow workers progressive access to housing loans and to qualify for mortgage subsidies sponsored by BANAVIH through commercial banks.
      Notes: Fund for Obligatory Savings for Housing (FAOV) consists of savings from individuals and employers (3% of monthly salary of employees; 2% paid by employer and 1% by worker). These funds allow workers progressive access to housing loans and to qualify for mortgage subsidies sponsored by BANAVIH through commercial banks.
      Notes: Fund for Obligatory Savings for Housing (FAOV) consists of savings from individuals and employers (3% of monthly salary of employees; 2% paid by employer and 1% by worker). These funds allow workers progressive access to housing loans and to qualify for mortgage subsidies sponsored by BANAVIH through commercial banks.
      Notes: Fund for Obligatory Savings for Housing (FAOV) consists of savings from individuals and employers (3% of monthly salary of employees; 2% paid by employer and 1% by worker). These funds allow workers progressive access to housing loans and to qualify for mortgage subsidies sponsored by BANAVIH through commercial banks.
      Notes: Government can help low-income households with a one-time or gradual disbursement of money to own a house, under Direct Subsidy scheme.
      Notes: Government can help low-income households with a one-time or gradual disbursement of money to own a house, under Direct Subsidy scheme.
      Notes: Government can provide a direct housing subsidy once to low income families who qualify for such assistance. Subsidy will be granted either in a single or progressive way toward acquisition, expansion, self-construction, or improvements of a main dwelling.
      Notes: Government can provide a direct housing subsidy once to low income families who qualify for such assistance. Subsidy will be granted either in a single or progressive way toward acquisition, expansion, self-construction, or improvements of a main dwelling.
      Notes: Government sponsored Mortgage Guarantee.
      Notes: Government sponsored Mortgage Guarantee.
      Notes: Interest rates are capped at 4.33%,10.66% and 16.4% for low, medium and high income individuals respectively.
      Notes: Interest rates are capped at 4.33%,10.66% and 16.4% for low, medium and high income individuals respectively.
      Notes: Interest rates are capped at lower levels by law depending on income bracket. 4.66% interest rate for income less than 4 times minimum wage. 6.66% interest rate for income between 4-6 times minimum wage. 8.66% interest rate for income between 6-8 times minimum wage. 10.66% interest rate for income between 8-15 times minimum wage. These social interest rate caps apply only to borrowers who contribute their income to the Fondo de Ahorro Obligatorio para la Vivienda (FAOV).
      Notes: Interest rates are capped at lower levels by law depending on income bracket. 4.66% interest rate for income less than 4 times minimum wage. 6.66% interest rate for income between 4-6 times minimum wage. 8.66% interest rate for income between 6-8 times minimum wage. 10.66% interest rate for income between 8-15 times minimum wage. These social interest rate caps apply only to borrowers who contribute their income to the Fondo de Ahorro Obligatorio para la Vivienda (FAOV).
      Notes: Interest rates are capped at lower levels by law depending on income bracket. 4.66% interest rate for income less than 4 times minimum wage. 6.66% interest rate for income between 4-6 times minimum wage. 8.66% interest rate for income between 6-8 times minimum wage. 10.66% interest rate for income between 8-15 times minimum wage. These subsidies are funded by the obligatory contributions from employees and employers, and loans are guaranteed by government sponsored Mortgage Guarantee Fund.
      Notes: Interest rates are capped at lower levels by law depending on income bracket. 4.66% interest rate for income less than 4 times minimum wage. 6.66% interest rate for income between 4-6 times minimum wage. 8.66% interest rate for income between 6-8 times minimum wage. 10.66% interest rate for income between 8-15 times minimum wage. These subsidies are funded by the obligatory contributions from employees and employers, and loans are guaranteed by government sponsored Mortgage Guarantee Fund.
      Notes: Interest rates are capped by law and are called Social Interest rates.
      Notes: Interest rates are capped by law and are called Social Interest rates.
      Notes: Lending institutions are mandated to lend 20% of their portfolio towards mortgages.
      Notes: Lending institutions are mandated to lend 20% of their portfolio towards mortgages.
      Notes: National Percentage
      Notes: Real estate taxes are set by the municipality on which property is located.
      Notes: Real estate taxes are set by the municipality on which property is located.
      Notes: The Congress of the Republic of Venezuela passes laws on mortgages and regulates the industry.
      Notes: The Congress of the Republic of Venezuela passes laws on mortgages and regulates the industry.
      Notes: The Congress of the Republic of Venezuela passes laws on mortgages and regulates the industry.
      Notes: The Congress of the Republic of Venezuela passes laws on mortgages and regulates the industry.
      Notes: The Guarantee Fund covers the payment of principal, interest owed, premiums owed, trial costs, condomonium fees, utility charges, municipal taxes and hosing repairs associated with financing contracts whose level of delinquency will lead to foreclosure. The guarantee will also cover payment of balance due in the case of death or portion of balance due in case of unemployment.
      Notes: The Guarantee Fund covers the payment of principal, interest owed, premiums owed, trial costs, condomonium fees, utility charges, municipal taxes and hosing repairs associated with financing contracts whose level of delinquency will lead to foreclosure. The guarantee will also cover payment of balance due in the case of death or portion of balance due in case of unemployment.
      Notes: The Guarantee Fund covers the payment of principal, interest owed, premiums owed, trial costs, condomonium fees, utility charges, municipal taxes and hosing repairs associated with financing contracts whose level of delinquency will lead to foreclosure. The guarantee will also cover payment of balance due in the case of death or portion of balance due in case of unemployment.
      Notes: The Guarantee Fund covers the payment of principal, interest owed, premiums owed, trial costs, condomonium fees, utility charges, municipal taxes and hosing repairs associated with financing contracts whose level of delinquency will lead to foreclosure. The guarantee will also cover payment of balance due in the case of death or portion of balance due in case of unemployment.
      Notes: The registry for real estate is in Cuba, making it difficult to conduct proper real estate transactions or to identify owners.
      Notes: The total property transfer tax, including all duties and payments, is 2.5%
      Notes: Workers and employers contribute 3% of income (1% and 2% respectively) toward the Fondo de Ahorro Obligatorio para la Vivienda (FAOV). Contributors to this fund are eligible for housing loan subsidies.
      Notes: Workers and employers contribute 3% of income (1% and 2% respectively) toward the Fondo de Ahorro Obligatorio para la Vivienda (FAOV). Contributors to this fund are eligible for housing loan subsidies.
      Notes: Workers and employers contribute 3% of income (1% and 2% respectively) toward the Fondo de Ahorro Obligatorio para la Vivienda (FAOV). Contributors to this fund are eligible for housing loan subsidies.
      Notes: Workers and employers contribute 3% of income (1% and 2% respectively) toward the Fondo de Ahorro Obligatorio para la Vivienda (FAOV). Contributors to this fund are eligible for housing loan subsidies.