Housing Finance in Mexico: Current State and Future Sustainability
56 Pages Posted: 8 Jan 2012
Date Written: November 2011
Abstract
This paper analyzes a large database provided by INFONAVIT, Mexico’s principal mortgage issuer, which contains information on borrowers’ repayment behavior. It finds that borrowers who received subsidies do not show higher default rates than borrowers who received no financial assistance. Borrowers receiving subsidies actually take longer to show their first default than borrowers not receiving subsidies. Therefore, current subsidy programs do not seem to have negative financial implications for participating mortgage institutions.
JEL Classification: G18, G21, G28, H81, R31, R38, R51
Suggested Citation: Suggested Citation
Lopez-Silva, Marco and Abreu-Lastra, Raul and Saracho-Martinez, Alberto and Paulin-Hutmacher, Agustin, Housing Finance in Mexico: Current State and Future Sustainability (November 2011). IDB Working Paper No. IDB-TN-287, Available at SSRN: https://ssrn.com/abstract=1981538 or http://dx.doi.org/10.2139/ssrn.1981538
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