Transcript Housing Finance Systems in Five Countries (PowerPoint Slide

Housing Finance Trends: USA,
India, Europe, Thailand & SA
By Dr. Paul Hendler and Mr..
Morgan Pillay
REGULATION
The US Housing Finance System
US GOVT
Capital Markets (Banks, Investors,
Life/Pension Funds)
SECURITISATION
CONDUITS
Loans secured by property
Junk bonds/
Lower LTVs/Impl. Gvt Guar Expl. Gvt Guar
Private
Issuers
LOAN UNDERWRITING
LOAN ORIGINATION
Fannie Mae/
Freddie Mac
Ginnie Mae
Originators,
Mortgage Lenders,
Real Estate Agents,
Banks, Brokers
Borrowers
Dealer
Market
&
Rating
Agencies
Specialised Loan
Servicers
The Indian Housing Finance System
The State
Capital Markets (Banks, Investors)
Life Insurance
Co of India
General
Insurance Co
?
NATIONAL HOUSING BANK
LOAN SERVICING
LOAN UNDERWRITING
HFC
HFC
HFC
LOAN ORIGINATION
Mortgage Loans
Borrowers
Savings
The European Housing Finance System
Capital Markets (Banks, Investors,
Life/Pension Funds)
German Govt
(subsidies for
savings &
rental)
(SECURITISATION)
Bausparkasse
LOAN SERVICING
LOAN UNDERWRITING
LOAN ORIGINATION
HOUSE PRICE
DM 100K
Savings
DM 20K
Bridging
Loan
Housing
Loan
DM20K
Savers/Borrowers
Mortgage
Bank
Mortgage Loan
DM60K
The Thai Housing Finance System
The State
Capital Markets
(Banks, Investors)
?
LOAN SERVICING
LOAN UNDERWRITING
GOVERNMENT HOUSING BANK
(GHB)
LOAN ORIGINATION
FEATURES:
1. Only successful example
of direct state intervention
2. Business principles
& management (Profit)
3. Manage credit
risk of the poor
4. Deep outreach to low income
borrowers
Mortgage Loans
Borrowers
REGULATION
The SA Housing Finance System
Capital Markets (Banks, Parastatals
Investors, Life/Pension Funds)
(e.g. NHFC)
Loans secured
by property,
lower LTV ratios
Lending
Institutions
BANKS
Non Mortgage Security
NONBANKS
LOAN SERVICING
NGOs
Subsidy
beneficiaries
LOAN UNDERWRITING
LOAN ORIGINATION
Govt
Depositors
Borrowers
Trend Summary
POLICY
State
Market
driven
-driven
(subsidies
& moral
risk)
REGULATED
INTEREST RATES
Highly
Unregulated
regulated
Market

USA


INDIA


GERM
ANY



THAI



SA



Subsidised



Trend Summary
LOAN
PRODUCTS
Mortgage Microloans
USA


INDIA
UNDERLYING
SECURITY
Property Non(mortgag mortgage
e)
LEGAL/ADMIN
Effective




GERM
ANY



THAI



SA



Poor


Trend Summary
SERVICES
Specialised
USA
HOUSING PRODUCTS
Bundled


GERMA
NY
THAI





Unconvention
al

INDIA
SA
Conventional

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