The Housing Finance System

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A. Primary Housing Finance Market

A.1 Industry Structure and Performance
VariableEnd of 2013End of 2012End of 2011SourcesVar 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 2013End of 2012End of 2011SourcesVar ID
Total amount of home mortgage loans outstanding at the end of year in millions of USD:439.4 USD (millions)370.4 USD (millions)329.51 USD (millions)
Central Bank of Nicaragua
A.2.1
Total amount of home mortgage loans outstanding at the end of year as % of GDP (current)3.89%3.53%3.42%
Central Bank of Nicaragua and IMF
A.2.1.1
and as % of all credits outstanding13.2%12.9%14.1%
Central Bank of Nicaragua
A.2.1.2
A.3 Housing Finance Products
VariableEnd of 2013End of 2012End of 2011SourcesVar 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
10 year fixed rate mortgage9.5%9.5% 
BAC Nicaragua
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 LTV80%80% 
Banpro, BAC and Banco ProCredit
A.3.8.1
Maximum term over which pmt is calculated? 15 years15 years 
Banpro, BAC and Banco
A.3.9
Mortgage pmt-to-income ratio A.3.10
A.4 Lending and Servicing Process
VariableEnd of 2013End of 2012End of 2011SourcesVar ID
Which institutions define underwriting rules? A.4.2
A.5 Credit Risk Assessment
VariableEnd of 2013End of 2012End of 2011SourcesVar ID
Do credit bureaus exist? YesYesYes
TransUnion
A.5.2
Are there legal/regulatory constraints to gaining access to credit information?YesYesYes
TransUnion
A.5.2.1
B. Funding Sources for Mortgages and the Secondary Mortgage Market
VariableEnd of 2013End of 2012End of 2011SourcesVar ID
What are the main funding sources for mortgages?B.1
Retail funding (deposits/other)primaryprimaryPrimary
SIBOIF Nicaragua
B.1.1
Wholesale funding: loans from other banks or corporations  Non-applicable
SIBOIF
B.1.2
Funding through mortgage bonds   Non-applicable
SIBOIF
B.1.3
Funding through securitization of mortgages  Non-applicable
SIBOIF
B.1.4
Other   Secondary
FOSOVI
B.1.5
C. Housing Microfinance
VariableEnd of 2013End of 2012End of 2011SourcesVar 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: BAC Nicaragua offers fixed interest loans at a rate of 9.5% up to 15 years.
Notes: BAC Nicaragua offers fixed interest loans at a rate of 9.5% up to 15 years.
Notes: Exemption of VAT on the purchase of building materials.
Notes: Exemption of VAT on the purchase of building materials.
Notes: Exemption of VAT on the purchase of building materials.
Notes: FOSOVI (Fondo Social de Vivienda) provides subsidies to support housing loans to lower income families although the subsidies remain small accounting for only $4 million annually.
Notes: National Percentage. This number includes only owners with deeds, if owners without deeds in the informal housing market are included the owner-occupied rate rises to 84.42%
Notes: One-time grant of $1500 USD.