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Housing Finance Trends: USA, India, Europe, Thailand & South Africa
By Dr Arumugam Pillay and Dr Paul Hendler of South Africa
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Housing Finance in the USA
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Mortgage Loans Borrowers The US Housing Finance System Loan Servicing
Mortgage Insurers Underwriting Real Estate Agents, Originators Mortgage Lenders Banks, Brokers Loan Servicing Mortgage Loans Loan Origination Borrowers
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Mortgage Loans Borrowers The US Housing Finance System Loan Servicing
Mortgage Insurers Underwriting Real Estate Agents, Originators Mortgage Lenders Banks, Brokers Loan Servicing Mortgage Loans Loan Origination Borrowers
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Mortgage Loans Borrowers Private Issuers Fanny Mae/ Freddie Mac
The US Housing Finance System Private Issuers Fanny Mae/ Freddie Mac Ginnie Mae CONDUITS Mortgage Insurers Underwriting Real Estate Agents, Originators Mortgage Lenders Banks, Brokers Loan Servicing Mortgage Loans Loan Origination Borrowers
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Mortgage Loans Borrowers Loans secured by property
The US Housing Finance System Loans secured by property Lower LTVs/Impl. Govt Guar Junk bonds/ Expl. Govt Guar SECURITISATION Private Issuers Fanny Mae/ Freddie Mac Ginnie Mae CONDUITS Mortgage Insurers Underwriting Real Estate Agents, Originators Mortgage Lenders Banks, Brokers Loan Servicing Mortgage Loans Loan Origination Borrowers
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Mortgage Loans Borrowers Loans secured by property
The US Housing Finance System Loans secured by property Lower LTVs/Impl. Govt Guar Junk bonds/ Expl. Govt Guar SECURITISATION Private Issuers Fanny Mae/ Freddie Mac Ginnie Mae CONDUITS Mortgage Insurers Underwriting Real Estate Agents, Originators Mortgage Lenders Banks, Brokers Loan Servicing Mortgage Loans Loan Origination Borrowers
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Mortgage Loans Borrowers Loans secured by property
The US Housing Finance System CAPITAL MARKETS Banks, Investors, Life/Pension Funds REGULATION Loans secured by property Lower LTVs/Impl. Govt Guar Junk bonds/ Expl. Govt Guar SECURITISATION Private Issuers Fanny Mae/ Freddie Mac Ginnie Mae CONDUITS Mortgage Insurers Underwriting Real Estate Agents, Originators Mortgage Lenders Banks, Brokers Loan Servicing Mortgage Loans Loan Origination Borrowers
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Mortgage Loans Borrowers Loans secured by property
The US Housing Finance System CAPITAL MARKETS Banks, Investors, Life/Pension Funds REGULATION Loans secured by property Lower LTVs/Impl. Govt Guar Junk bonds/ Expl. Govt Guar SECURITISATION Dealer Market & Rating Agencies Private Issuers Fanny Mae/ Freddie Mac Ginnie Mae CONDUITS Mortgage Insurers Underwriting Real Estate Agents, Originators Mortgage Lenders Banks, Brokers Loan Servicing Mortgage Loans Loan Origination Borrowers
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Mortgage Loans Borrowers Loans secured by property
The US Housing Finance System CAPITAL MARKETS Banks, Investors, Life/Pension Funds REGULATION Loans secured by property Lower LTVs/Impl. Govt Guar Junk bonds/ Expl. Govt Guar SECURITISATION Dealer Market & Rating Agencies Private Issuers Fanny Mae/ Freddie Mac Ginnie Mae CONDUITS Mortgage Insurers Specialised Loan Services Underwriting Real Estate Agents, Originators Mortgage Lenders Banks, Brokers Loan Servicing Mortgage Loans Loan Origination Borrowers
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Housing Finance in India
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Borrowers HOME LOANS The Indian Housing Finance System
Loan Underwriting Loan Servicing Housing Finance Companies Housing Finance Companies Housing Finance Companies LOAN ORIGINATION SAVINGS HOME LOANS Borrowers
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Borrowers National Housing Bank HOME LOANS
The Indian Housing Finance System National Housing Bank Loan Underwriting Loan Servicing Housing Finance Companies Housing Finance Companies Housing Finance Companies LOAN ORIGINATION SAVINGS HOME LOANS Borrowers
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Borrowers National Housing Bank HOME LOANS
The Indian Housing Finance System National Housing Bank Loan Underwriting Loan Servicing Housing Finance Companies Housing Finance Companies Housing Finance Companies LOAN ORIGINATION SAVINGS HOME LOANS Borrowers
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? Borrowers National Housing Bank HOME LOANS
The Indian Housing Finance System CAPITAL MARKETS Banks & Investors ? National Housing Bank Loan Underwriting Loan Servicing Housing Finance Companies Housing Finance Companies Housing Finance Companies LOAN ORIGINATION SAVINGS HOME LOANS Borrowers
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Housing Finance in Germany
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Borrowers The German Housing Finance System BAUSPARKASSE
Savings DM 20K Bridging Loan Housing Loan DM 20K Loan Origination Loan Underwriting Loan Servicing Borrowers House Price DM 100K
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Borrowers The German Housing Finance System BAUSPARKASSE
Savings DM 20K Bridging Loan Housing Loan DM 20K Loan Origination Loan Underwriting Loan Servicing Borrowers House Price DM 100K
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Borrowers The German Housing Finance System BAUSPARKASSE
Savings DM 20K Bridging Loan Housing Loan DM 20K Loan Origination Loan Underwriting Loan Servicing Borrowers House Price DM 100K
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Borrowers The German Housing Finance System BAUSPARKASSE MORTGAGE BANK
Savings DM 20K Bridging Loan Housing Loan DM 20K MORTGAGE BANK Mortgage Loan DM 60K Loan Origination Loan Underwriting Loan Servicing Borrowers House Price DM 100K
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Banks, Investors, Life/Pension Funds
The German Housing Finance System CAPITAL MARKETS Banks, Investors, Life/Pension Funds BAUSPARKASSE Savings DM 20K Bridging Loan Housing Loan DM 20K MORTGAGE BANK Mortgage Loan DM 60K Loan Origination Loan Underwriting Loan Servicing Borrowers House Price DM 100K
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Borrowers The German Housing Finance System CAPITAL MARKETS
Banks, Investors, Life/Pension Funds German Government Subsidies for Savings & Rental BAUSPARKASSE Savings DM 20K Bridging Loan Housing Loan DM 20K MORTGAGE BANK Mortgage Loan DM 60K Loan Origination Loan Underwriting Loan Servicing Borrowers House Price DM 100K
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Borrowers The German Housing Finance System CAPITAL MARKETS
Banks, Investors, Life/Pension Funds German Government Subsidies for Savings & Rental BAUSPARKASSE Savings DM 20K Bridging Loan Housing Loan DM 20K MORTGAGE BANK Mortgage Loan DM 60K Loan Origination Loan Underwriting Loan Servicing Borrowers House Price DM 100K
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Borrowers The German Housing Finance System CAPITAL MARKETS
Banks, Investors, Life/Pension Funds German Government Subsidies for Savings & Rental SECURITISATION BAUSPARKASSE Savings DM 20K Bridging Loan Housing Loan DM 20K MORTGAGE BANK Mortgage Loan DM 60K Loan Origination Loan Underwriting Loan Servicing Borrowers House Price DM 100K
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Housing Finance in Thailand
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Government Housing Bank
The Thailand Housing Finance System Government Housing Bank (GHB) Loan Origination Loan Underwriting Loan Servicing MORTGAGE LOANS Borrowers
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Government Housing Bank
The Thailand Housing Finance System Government Housing Bank (GHB) Commercial Banks Loan Origination Loan Underwriting Loan Servicing MORTGAGE LOANS Borrowers
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Government Housing Bank
The Thailand Housing Finance System The State Government Housing Bank (GHB) Commercial Banks Loan Origination Loan Underwriting Loan Servicing MORTGAGE LOANS Borrowers
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Government Housing Bank
The Thailand Housing Finance System CAPITAL MARKETS Banks, Investors The State ? Government Housing Bank (GHB) Commercial Banks Loan Origination Loan Underwriting Loan Servicing MORTGAGE LOANS Borrowers
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Government Housing Bank
The Thailand Housing Finance System CAPITAL MARKETS Banks, Investors The State ? Government Housing Bank (GHB) Commercial Banks Loan Origination Loan Underwriting Loan Servicing FEATURES: 1. Only successful example of direct state intervention. 2. Business principles & management (Profit). 3. Manage credit risk of the poor. 4. Deep outreach to low Income borrowers . MORTGAGE LOANS Borrowers
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Housing Finance in South Africa
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Borrowers LENDING INSTITUTIONS
The South African Housing Finance System LENDING INSTITUTIONS Loans Secured by Property, Lower LTV Ratios Non-Mortgage Security Loan Origination Loan Underwriting Loan Servicing Banks Non-Banks NGO’s Borrowers
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Borrowers LENDING INSTITUTIONS DEPOSITORS
The South African Housing Finance System LENDING INSTITUTIONS Loans Secured by Property, Lower LTV Ratios Non-Mortgage Security Loan Origination Loan Underwriting Loan Servicing Banks Non-Banks NGO’s DEPOSITORS Borrowers
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Borrowers LENDING INSTITUTIONS DEPOSITORS
The South African Housing Finance System CAPITAL MARKETS Banks, Investors, Life/Pension Funds Parastatals e.g. NHFC LENDING INSTITUTIONS Loans Secured by Property, Lower LTV Ratios Non-Mortgage Security Loan Origination Loan Underwriting Loan Servicing Banks Non-Banks NGO’s DEPOSITORS Borrowers
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Borrowers LENDING INSTITUTIONS DEPOSITORS
The South African Housing Finance System CAPITAL MARKETS Banks, Investors, Life/Pension Funds Parastatals e.g. NHFC Government LENDING INSTITUTIONS Loans Secured by Property, Lower LTV Ratios Non-Mortgage Security Loan Origination Loan Underwriting Loan Servicing Banks Non-Banks NGO’s Subsidy Beneficiaries DEPOSITORS Borrowers
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Borrowers LENDING INSTITUTIONS DEPOSITORS
The South African Housing Finance System CAPITAL MARKETS Banks, Investors, Life/Pension Funds Parastatals e.g. NHFC REGULATION Government LENDING INSTITUTIONS Loans Secured by Property, Lower LTV Ratios Non-Mortgage Security Loan Origination Loan Underwriting Loan Servicing Banks Non-Banks NGO’s Subsidy Beneficiaries DEPOSITORS Borrowers
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State driven (subsidies & moral risk)
Trend Summary Policy State driven (subsidies & moral risk) Market-driven USA India Germany Thailand South Africa
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State driven (subsidies & moral risk)
Trend Summary Policy Regulated State driven (subsidies & moral risk) Market-driven Highly Regulated Un-Regulated USA India Germany Thailand South Africa
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State driven (subsidies & moral risk)
Trend Summary Policy Regulated Interest Rates State driven (subsidies & moral risk) Market-driven Highly Regulated Un-Regulated Market Subsidised USA India Germany Thailand South Africa
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Housing or Micro-Loans
Trend Summary Loan Products Mortgage Housing or Micro-Loans USA India Germany Thailand South Africa
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Housing or Micro-Loans
Trend Summary Loan Products Underlying Security Mortgage Housing or Micro-Loans Property (Mortgage) Non-Mortgage USA India Germany Thailand South Africa
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Housing or Micro-Loans
Trend Summary Loan Products Underlying Security Legal / Admin Mortgage Housing or Micro-Loans Property (Mortgage) Non-Mortgage Effective Poor USA India Germany Thailand South Africa
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Trend Summary Services Specialised Bundled USA India Germany
Thailand South Africa
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Trend Summary Services Housing Products Specialised Bundled
Conventional Unconventional USA India Germany Thailand South Africa
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