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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
Types of originating lenders/market share:					A.1.2
Identify the 3 largest loan originating lenders	Luminor Bank, Swedbank, SEB banka	Luminor Bank, Swedbank, SEB banka	Swedbank, Nordea Bank, DNB Bank	Finance Latvia Association	A.1.3
Are there (quasi) public mortgage lenders:	No	No	No	Research	A.1.4
Universal/ commercial banks	No	No	No	Baltic Legal	A.1.4.1
Level of Non-Performing Mortgage Loans (90 days or more past due):					A.1.6
as a % of outstanding loan amount	2.66%	2.73%	4.01%	Financial and Capital Markets Commission	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:	4,799.04 USD (millions)	5,350.92 USD (millions)	4,750.2 USD (millions)	Central Bank of Latvia	A.2.1
Total amount of home mortgage loans outstanding at the end of year as % of GDP (current)	13.76%	17.53%	17.14%	Central Bank of Latvia, WEO	A.2.1.1
and as % of all credits outstanding	28.51%	26.81%	24.47%	Central Bank of Latvia	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
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
as % of loan amount	.1%			Hypostat	A.3.6.2
Typical third party fees associated with mortgage origination:					A.3.7
Loan-to-Value (LTV) on first mortgage:					A.3.8
Maximum LTV	90	90	90	Consumer Rights Protection Law	A.3.8.1
Maximum term over which pmt is calculated?	30 years	30 years	30 years	Various Banks	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	Research	A.4.1
Which institutions define underwriting rules?					A.4.2
Central Bank/Ministry of Finance	Yes	Yes	Yes	Financial and Capital Markets Commission	A.4.2.1
Other	Yes	Yes	Yes	Financial and Capital Markets Commission	A.4.2.4

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	Kreditinformacijas birojs	A.5.2
Are there legal/regulatory constraints to gaining access to credit information?	Yes	Yes	Yes	Law on Credit Register	A.5.2.1
Is mortgage default insurance available?	Yes			SEB Banka	A.5.3
Are credit guarantee systems used?	Yes	Yes	Yes	ALTUM	A.5.4
Is there public sponsored MI / guarantee?	Yes	Yes	Yes	ALTUM	A.5.5

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	Hypostat	B.1.1
Funding through mortgage bonds			tertiary	Hypostat 2011	B.1.3
Funding through securitization of mortgages	secondary	secondary	secondary	IFC, CVID=jqerv42	B.1.4

C. Housing Microfinance

Variable	End of 2018	End of 2017	End of 2016	Sources	Var ID
Are non-collateralized housing micro-finance loans offered?	Yes	Yes	Yes	Research	C.1
Types of lenders operating in the housing micro-finance (HMF) sector:					C.2
Commercial banks	Yes			Swedbank	C.2.1
Others	Yes	Yes	Yes	LAKS Credit Union	C.2.4
None	No	No	No	Research	C.2.5
Level of NPLs (>90 days past due) in HMF					C.4

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