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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
Universal/ commercial banks	90% of total	Not available	Not available	SNB	A.1.2.1
Others (e.g. insurance co, pension funds, labor tax funds)	5.5% of total	Not available	Not available	SNB	A.1.2.5
Identify the 3 largest loan originating lenders	UBS, Credit Suisse	UBS, Credit Suisse	UBS, Credit Suisse	Relbanks	A.1.3
Are there (quasi) public mortgage lenders:	Yes	Yes	Yes	Swiss Cantonal Banks	A.1.4
Universal/ commercial banks	Yes	Yes	Yes	Swiss Cantonal Banks	A.1.4.1
Other depository institutions (savings and loans/mutual savings and credit institutions)	Yes	Yes	Yes	PostFinance	A.1.4.2
Others (e.g. insurance co, pension funds, labor tax funds)	Yes	Yes	Yes	Homegate AG	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	.67%	.64%	.74%	World Bank	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:	1,024,842 USD (millions)	1,007,584 USD (millions)	940,504 USD (millions)	SNB	A.2.1
Total amount of home mortgage loans outstanding at the end of year as % of GDP (current)	141.21%	144.92%	136.79%	SNB	A.2.1.1
and as % of all credits outstanding	74.37%	73.75%	74.97%	SNB	A.2.1.2
What % of total new mortgages is refinance?		12%		ECBC	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	80%	75%	Not available	Swiss Bankers Association	A.3.1.1
Variable rate/indexed	20%	25%	Not available	IMF	A.3.1.2
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 mortgage	1.5%	Not available	Not available	IMF	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 LTV	80.00	80.00	80.00	SNB	A.3.8.1
Typical LTV at origination	80.00	70.00	70.00	SNB	A.3.8.2
Maximum term over which pmt is calculated?	Not available	Not available	Not available	International Comparison of Mortgage Product Offerings	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	OECD	A.4.1
Which institutions define underwriting rules?					A.4.2
Major Lender	Yes	Yes	Yes	OECD, Swiss Bankers Association	A.4.2.3
Other	Yes	Yes		FINMA	A.4.2.4
Are loan originations conducted by others than employees of lenders?	Yes			Credit Suisse	A.4.3

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	European Credit Research Institute	A.5.2
Are there legal/regulatory constraints to gaining access to credit information?	No	No	No	Doing Business Survey	A.5.2.1
Is mortgage default insurance available?	Yes	Yes	Yes	UBS	A.5.3

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	International Comparison of Mortgage Product Offerings	B.1.1
Funding through mortgage bonds	secondary	secondary	secondary	ECBC and International Comparison of Mortgage Product Offerings	B.1.3
Funding through securitization of mortgages	tertiary	tertiary	tertiary	International Comparison of Mortgage Product Offerings	B.1.4
Other	Not available	Not available	Not available		B.1.5

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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