HOFINET | Housing Finance Information Network

The Housing Finance System

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A. Primary Housing Finance Market

A.1 Industry Structure and Performance

Variable	End of 2017	End of 2016	End of 2015	Sources	Var ID
Number of firms originating and funding mortgage loans	40	40	41	Country Editor	A.1.1
Types of originating lenders/market share:					A.1.2
Universal/ commercial banks	86.71% of total	88.38% of total	89.69% of total	Country Editor	A.1.2.1
Other depository institutions (savings and loans/mutual savings and credit institutions)	0% of total	0% of total	0% of total	Country Editor	A.1.2.2
Non-depository financial institutions specialized in housing finance	13.29% of total	11.62% of total	10.31% of total	Country Editor	A.1.2.3
General non-depository financial institutions			0% of total	Country Editor	A.1.2.4
Others (e.g. insurance co, pension funds, labor tax funds)			0% of total	Country Editor	A.1.2.5
Are there (quasi) public mortgage lenders:	No	No	No	Country Editor	A.1.4
Universal/ commercial banks			No	Country Editor	A.1.4.1
Other depository institutions (savings and loans/mutual savings and credit institutions)			No	Country Editor	A.1.4.2
Non-depository financial institutions specialized in housing finance			No	Country Editor	A.1.4.3
General non-depository financial institutions			No	Country Editor	A.1.4.4
Others (e.g. insurance co, pension funds, labor tax funds)			No	Country Editor	A.1.4.5
Typical lending spreads for mortgages	4.1%	4%	4%	Country Editor	A.1.5
Level of Non-Performing Mortgage Loans (90 days or more past due):					A.1.6
as a % of outstanding loan amount			5.66%	Country Editor	A.1.6.2
Average 1997-2007					A.1.7
as a % of outstanding loan amount			4.2%	CBA	A.1.7.2

A.2 Size of Mortgage Finance Sector

Variable	End of 2016	End of 2015	Sources	Var ID
Total amount of home mortgage loans outstanding at the end of year in millions of USD:	429.48 USD (millions)	412.48 USD (millions)	Central Bank of Armenia	A.2.1
Total amount of home mortgage loans outstanding at the end of year as % of GDP (current)	4.07%	3.91%	Central Bank of Armenia	A.2.1.1
and as % of all credits outstanding	8.44%	8.51%	Central Bank of Armenia	A.2.1.2
Total # of home mortgage loans outstanding at the end of year	26,000 thousand	24,000 thousand	Country Editor	A.2.2
Total amount of home mortgages made in calendar year in millions of USD	103.67 USD (millions)	93.37 USD (millions)	Country Editor	A.2.3
and as % of GDP (current)	.98%	.88%	Country Editor	A.2.3.1
and as % of all credits originated in calender year		2.28%	Country Editor	A.2.3.2
What % of total new mortgages is refinance?		.01%	Central Bank of Armenia Statistics	A.2.5

A.3 Housing Finance Products

Variable	End of 2016	End of 2015	Sources	Var ID
Mortgage products as % of all mortgages (approx.) in local currency:				A.3.1
Fixed rate for life of loan		Not available	Financial Armenia or Armenia Bank Portal, or Central Bank of Armenia	A.3.1.1
Variable rate/indexed		Not available	Financial Armenia or Armenia Bank Portal, or Central Bank of Armenia	A.3.1.2
Variable rate/discretionary		Not available	Financial Armenia or Armenia Bank Portal, or Central Bank of Armenia	A.3.1.3
Other fully amortizing loans (e.g. Rollover)		0%	Central Bank of Armenia	A.3.1.4
Non-fully amoritizing loans (e.g. Price level adjusted/Interest only)		0%	Central Bank of Armenia	A.3.1.5
Loans based on foreign currency as % of all mortgage products	51%	54%	Country Editor	A.3.2
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		13%	Country Editor	A.3.4.1
Typical lender fees associated with mortgage origination:				A.3.6
Fixed in amount		130 USD	Country Editor	A.3.6.1
as % of loan amount		1%	Country Editor	A.3.6.2
Typical third party fees associated with mortgage origination:				A.3.7
Appraisal fees		50 USD	Country Editor	A.3.7.1
Title related fees		50 USD	Country Editor	A.3.7.2
Legal fees		50 USD	Country Editor	A.3.7.3
Loan-to-Value (LTV) on first mortgage:				A.3.8
Maximum LTV		90	HSBC	A.3.8.1
Maximum term over which pmt is calculated?		35 years	VTB Bank	A.3.9
Mortgage pmt-to-income ratio				A.3.10
Maximum pmt-to-income ratio (Individual income)		70%	HSBC	A.3.10.2
Typical pmt-to-income ratio (Individual income)		35%	Country Editor	A.3.10.4

A.4 Lending and Servicing Process

Variable	End of 2015	Sources	Var ID
Does the mortgage industry use standard principles/guidelines for underwriting?	Yes	National Mortgage Company	A.4.1
Which institutions define underwriting rules?			A.4.2
Central Bank/Ministry of Finance	No	Country Editor	A.4.2.1
Secondary market facility	Yes	National Mortgage Company	A.4.2.2
Major Lender	No	Country Editor	A.4.2.3
Other	No	Country Editor	A.4.2.4
Are loan originations conducted by others than employees of lenders?	No	Country Editor	A.4.3
% of Originations done by brokers	0%	Country Editor	A.4.3.1
% of Originations done on the internet	0%	Country Editor	A.4.3.2
% of appraisals done by employees of lenders	Non-applicable	Country Editor	A.4.4
Do third party servicing institutions exist?	No	Country Editor	A.4.5

A.5 Credit Risk Assessment

Variable	End of 2016	End of 2015	Sources	Var ID
Do credit bureaus exist?	Yes	Yes	Country Editor	A.5.2
Are there legal/regulatory constraints to gaining access to credit information?	No	No	Country Editor	A.5.2.1
What percentage of mortgage originations use credit scoring?		100%	Country Editor	A.5.1
Is mortgage default insurance available?		No	Country Editor	A.5.3
Are credit guarantee systems used?		No	Country Editor	A.5.4
Is there public sponsored MI / guarantee?		No	Country Editor	A.5.5

B. Funding Sources for Mortgages and the Secondary Mortgage Market

Variable	End of 2016	End of 2015	Sources	Var ID
What are the main funding sources for mortgages?				B.1
Retail funding (deposits/other)	primary	primary	IMF	B.1.1
Wholesale funding: loans from other banks or corporations		secondary	Country Editor	B.1.2
What % of Residential Mortgage Backed Securities is issued by centralized conduit or liquidity facility?		Non-applicable		B.2

C. Housing Microfinance

Variable	End of 2015	Sources	Var ID
Are non-collateralized housing micro-finance loans offered?	Yes	Country Editor	C.1
Types of lenders operating in the housing micro-finance (HMF) sector:			C.2
Commercial banks	Yes	Country Editor	C.2.1
Level of NPLs (>90 days past due) in HMF			C.4
Are non-collateralized but secured housing finance products offered (e.g. secured by pension or insurance savings)	No	Country Editor	C.5