Housing Finance in Brazil: Institutional Improvements and Recent Developments

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. 1 Abstract * Despite a recent expansion in housing finance, Brazil still faces a severe housing shortage, especially among lower-income people, and it is important to examine the development, limitations and prospects of the country's housing finance market. This paper investigates the recent evolution of that market in Brazil, focusing on whether the current expansion in mortgage lending is the result of institutional and economic improvements favoring economic stability and compliance with contractual obligations or is merely an effect of the higher level of housing loans imposed by the government on financial institutions. Different explanations are found for private and public institutions. Terms of use: Documents inJEL Classifications: D23, N97, R21, R31, R38

Household Debt and Recession in Brazil

“…Brazil experienced a period of relative macroeconomic stability in the early 2000s. Important factors that favored macroeconomic stability were the adoption of the Real Stabilization plan in 1994 and the implementation of inflation targeting since 1999 (Martins et al 2011). These institutional changes ended a period of high inflation that lasted throughout the 1980s and into the early 1990s.…”

“…Using loan-level data from one of the largest Brazilian banks Assunçao et al (2013) show that the reform fostered an expansion in car loans, especially among higher-risk lowerincome borrowers, and lower interest rates. Martins et al (2011) focus on the housing market and argue how macroeconomic stability and institutional reforms introduced in the early 2000 have helped fostering the mortgage market.…”

Household Debt and Recession in Brazil

“…Using loan-level data from one of the largest Brazilian banks Assunçao et al (2013) show that the reform fostered an expansion in car loans, especially among higher-risk lowerincome borrowers, and lower interest rates. Martins et al (2011) focus on the housing market and argue how macroeconomic stability and institutional reforms introduced in the early 2000 have helped fostering the mortgage market.…”

Financing Affordable Housing Through Compulsory Saving: The Two-Decade Experience of Housing Provident Fund in China

“…Some HPF schemes such as those in China and Mexico function as direct lenders to issue mortgages to their members. Others such as the FGTS in Brazil are simply the intermediary devices for deposit collection, contracting the lending business out to designated institutions (ABECIP, 2010;Martins et al, 2011). Singapore is noteworthy in its separation of lending from CPF management.…”