Housing%20Finance%20in%20Mexico%3A%20Current%20State%20and%20Future%20Sustainability

Technical Notes

Housing Finance in Mexico: Current State and Future Sustainability


CODE: IDB-TN-287
AUTHOR(s): Abreu-Lastra, Raul , Lopez-Silva, Marco , Paulin-Hutmacher, Agustin , Saracho-Martinez, Alberto
PUBLISHED: November 2011
LANGUAGE: English
RELATED TOPICS: Poverty Reduction and Labor
DOWNLOAD FILE IN: English

Abstract:

This paper analyzes a large database provided by INFONAVIT, Mexico’s principal mortgage issuer, which contains information on borrowers’ repayment behavior. It finds that borrowers who received subsidies do not show higher default rates than borrowers who received no financial assistance. Borrowers receiving subsidies actually take longer to show their first default than borrowers not receiving subsidies. Therefore, current subsidy programs do not seem to have negative financial implications for participating mortgage institutions.

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