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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
Number of firms originating and funding mortgage loans	238	245	250	Country Editor, Bank of Spain	A.1.1
Types of originating lenders/market share:					A.1.2
Universal/ commercial banks	97.96% of total	98% of total	97.94% of total	Bank of Spain	A.1.2.1
Non-depository financial institutions specialized in housing finance	2.04% of total	2% of total	2.06% of total	Bank of Spain	A.1.2.3
Identify the 3 largest loan originating lenders	Banco Santander, BBVA, CaixaBank	Banco Santander, BBVA, CaixaBank	Banco Santander, BBVA, CaixaBank	Country Editor	A.1.3
Are there (quasi) public mortgage lenders:	No	No	No	Country Editor	A.1.4
Universal/ commercial banks	No	No	No	Country Editor	A.1.4.1
Other depository institutions (savings and loans/mutual savings and credit institutions)	No	No	No	Country Editor	A.1.4.2
Non-depository financial institutions specialized in housing finance	No	No	No	Country Editor	A.1.4.3
General non-depository financial institutions	No	No	No	Country Editor	A.1.4.4
Others (e.g. insurance co, pension funds, labor tax funds)	No	No	No	Country Editor	A.1.4.5
Level of Non-Performing Mortgage Loans (90 days or more past due):					A.1.6
as a % of outstanding loan amount	4.05%	4.69%	4.67%	Bank of Spain	A.1.6.2
Average 1997-2007					A.1.7
as a % of outstanding loan amount			.42%	Country Editor	A.1.7.2

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:	564,144.6 USD (millions)	596,905.32 USD (millions)	538,911.95 USD (millions)	Bank of Spain	A.2.1
Total amount of home mortgage loans outstanding at the end of year as % of GDP (current)	40.83%	42.84%	45.9%	Bank of Spain	A.2.1.1
and as % of all credits outstanding			27.62%	WDI	A.2.1.2
Total # of home mortgage loans outstanding at the end of year		Not available	Not available		A.2.2
Total amount of home mortgages made in calendar year in millions of USD	49,490.8 USD (millions)	46,606 USD (millions)	39,531.91 USD (millions)	Bank of Spain	A.2.3
and as % of GDP (current)	3.58%	3.34%	3.37%	Bank of Spain, National Institute of Statistics	A.2.3.1
and as % of all credits originated in calender year			39.23%	Bank of Spain	A.2.3.2
Total # of home mortgage originations made in calendar year	Not available	Not available	222.7 thousand	Bank of Spain	A.2.4
What % of total new mortgages is refinance?	4.05%	6.15%	15.72%	Bank of Spain	A.2.5

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
Fixed rate for life of loan	31.08%	26.61%	26.19%	Country Editor	A.3.1.1
Variable rate/indexed	36.27%	42.45%	46.33%	Country Editor	A.3.1.2
Variable rate/discretionary	0%	0%	0%	Country Editor	A.3.1.3
Other fully amortizing loans (e.g. Rollover)	32.65%	30.95%	27.48%	Country Editor	A.3.1.4
Most prevalent type of foreign currency mortgage used:					A.3.3
Most frequent interest rates on fully amortizing:					A.3.4
discretionary ARM/10 year term	1.58%	1.55%	1.67%	Country Editor, Bank of Spain	A.3.4.3
5 year roll-over/10 year term	4.46%	4.11%	4.4%	Country Editor, Bank of Spain	A.3.4.4
Most frequent rate on interest only 10 yr FRM			Non-applicable		A.3.5
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 LTV	80	80	80	Country Editor	A.3.8.1
Typical LTV at origination	80	80	80	Country Editor	A.3.8.2
Maximum term over which pmt is calculated?			30 years	Santander: https://online.bancosantander.es/files/nuevo-plan-credito-familiar/pro-hipoteca14.html?idm=y770qf-md70g7	A.3.9
Mortgage pmt-to-income ratio					A.3.10
Typical pmt-to-income ratio (Individual income)			33%	AHE Annual Review	A.3.10.4

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	Country Editor	A.4.1
Which institutions define underwriting rules?					A.4.2
Central Bank/Ministry of Finance			Yes	Editor Research	A.4.2.1
Are loan originations conducted by others than employees of lenders?	Yes	Yes	Yes	Country Editor	A.4.3
% of appraisals done by employees of lenders			Non-applicable		A.4.4
Do third party servicing institutions exist?	Yes	Yes	Yes	Country Editor	A.4.5

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	Country Editor	A.5.2
Are there legal/regulatory constraints to gaining access to credit information?	Yes	Yes	Yes	Country Editor	A.5.2.1
What percentage of mortgage originations use credit scoring?			Not available	Country Editor	A.5.1
Is mortgage default insurance available?	Yes	Yes	Yes	Country Editor	A.5.3
What is the typical MI product?			It varies. There are products that cover high LTVs and other designed for unemployment.	Country Editor	A.5.3.2
Are credit guarantee systems used?			Yes	Editor Research	A.5.4
Is there public sponsored MI / guarantee?	No	No	No	Country Editor	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	Country Editor, IMF	B.1.1
Wholesale funding: loans from other banks or corporations	Not available	Not available	Not available	Country Editor	B.1.2
Funding through mortgage bonds	secondary	secondary	secondary	Country Editor	B.1.3
Funding through securitization of mortgages	tertiary	tertiary	tertiary	Country Editor	B.1.4
Who are the investors in RMBS?	institutional investors	institutional investors	institutional investors	Country Editor	B.3
What is the proportion of RMBS in the overall private securities market?	32.53%	33.38%	36.6%	Bank of Spain	B.4

C. Housing Microfinance

Variable	End of 2018	End of 2017	End of 2016	Sources	Var ID
Types of lenders operating in the housing micro-finance (HMF) sector:					C.2
Level of NPLs (>90 days past due) in HMF					C.4

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