Expanding Housing Finance in Uganda : Task 2. Study to Examine the Use of Retail Funds for Mortgage Lending

The objective of the First Initiative Project in Uganda is to expand the access of households to housing finance, especially modest and lower income households, by introducing new and innovative housing loan products, by introducing innovative loan products combined with affordable housing designs. The project has delivered two studies to the Bank of Uganda: i) a study addressing the financial and banking sector context for housing finance, liquidity and liquidity management, and the resultant potential for use of retail funds for mortgage lending; and ii) a feasibility study for housing finance pilots targeted at modest and lower income households, seeking to introduce innovative loan products combined with lower cost house design in a planned urban setting. This paper, business and sustainability plan for affordable housing finance pilot projects, provides supporting technical detail for the feasibility study for design of pilot projects for modest and lower income households, including the need for more liquidity for lenders involved in lending to lower income households. Two types of pilot projects have been developed: one for starter homes for modest income households and one for an incrementally built home for low-modest income households. The recommended loan products include a down-market or, mini-mortgage, for the starter home and microfinance for housing for the lower income group. The paper: (i) outlines technical details regarding house design and loan product specifications; (ii) recommends the technical assistance and regulatory changes deemed necessary to implement successful pilot; and (iii) provides a brief commentary on actions that would assist such pilots reach sustainability and scale.

Bibliographic Details

Main Authors:	Hanouch, Michel, Ketley, Richard, Kramer, Jessica, Wiese, Christo
Format:	Other Financial Sector Study biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2009-06
Subjects:	ACCOUNTING, AFFORDABILITY, AFFORDABLE HOUSING, AFFORDABLE HOUSING FINANCE, AFFORDABLE HOUSING LOAN, ASSET MANAGERS, ASSET RATIO, BALANCE SHEET, BALANCE SHEETS, BANK ACCOUNT, BANK LOAN, BANK REGULATION, BANKING CRISIS, BANKING SECTOR, BANKING SYSTEM, BINDING CONSTRAINT, BOND ISSUANCE, BONDS, BORROWER, BORROWING, BRANCH NETWORKS, CAPITAL BASE, CAPITAL MARKETS, CENTRAL BANK, COLLATERAL, COMMERCIAL BANK, COMMERCIAL BANKS, COMMODITY PRICES, CONTINGENCY PLANNING, CORE DEPOSIT, CORE DEPOSIT BASE, CORE DEPOSITS, CREDIT ENHANCEMENT, CREDIT GUARANTEES, CREDIT LINES, CREDIT RATINGS, CREDIT RISK, DEBT CRISIS, DEBT OBLIGATIONS, DEBT SECURITIES, DEBTS, DEFAULT RISK, DEFAULT RISKS, DEFAULT SITUATION, DEFAULTS, DEMAND FOR BONDS, DEMAND FOR FUNDS, DEPOSIT, DEPOSIT INSURANCE, DEPOSIT LIABILITIES, DEPOSIT TAKING INSTITUTIONS, DEPOSITOR, DEPOSITORS, DEPOSITS, DERIVATIVES, DEVELOPING COUNTRIES, DEVELOPMENT FINANCE, DEVELOPMENT FINANCE COMPANY, DONOR FUNDS, DURABLE, EMERGING ECONOMIES, EMERGING MARKETS, EXPORT GROWTH, EXTERNAL FUNDING, FINANCIAL CRISES, FINANCIAL INSTITUTIONS, FINANCIAL MARKETS, FINANCIAL SAVINGS, FINANCIAL SERVICES, FINANCIAL SUPPORT, FINANCIAL SYSTEM, FIXED INCOME, FIXED INCOME INVESTMENTS, FOREIGN CURRENCY, FOREIGN CURRENCY LOANS, FORM OF COLLATERAL, FUNDING SOURCE, FUTURE LOAN, GOVERNMENT BOND, GOVERNMENT BONDS, GOVERNMENT DEBT, GOVERNMENT PAPER, GOVERNMENT SECURITIES, GROSS DOMESTIC PRODUCT, HOME IMPROVEMENT, HOME IMPROVEMENT LOANS, HOME LOANS, HOUSEHOLD INCOME, HOUSEHOLDS, HOUSING FINANCE, HOUSING LOAN, IMPLICIT GOVERNMENT GUARANTEE, INCOME GROUP, INCOME GROUPS, INCOME LEVELS, INCOME TAX, INFLATION, INFLATION RATE, INFLATION RATES, INNOVATIVE LOAN, INSTITUTIONAL FUNDS, INSTITUTIONAL INVESTOR, INSTITUTIONAL INVESTORS, INSTITUTIONAL LENDERS, INSURANCE COMPANIES, INSURANCE INDUSTRY, INTEREST RATE, INTEREST RATES, INTERNATIONAL BANKS, INVESTING, INVESTMENT CLIMATE, INVESTMENT OPPORTUNITIES, INVESTMENT PORTFOLIOS, LEASE AGREEMENTS, LEGAL FRAMEWORK, LEGAL RIGHTS, LENDER, LENDING EXPOSURE, LIABILITY, LIFE INSURANCE, LIFE INSURANCE COMPANIES, LINES OF CREDIT, LIQUIDITY, LIQUIDITY CONSTRAINTS, LIQUIDITY MANAGEMENT, LIQUIDITY RISK, LOAN, LOAN AGREEMENT, LOAN PERIOD, LOAN PRODUCTS, LOAN SIZE, LOCAL BANKS, LOCAL MARKET, LONG TERM ASSETS, LONG-TERM FUNDING, MACROECONOMIC CONDITIONS, MACROECONOMIC STABILITY, MACROECONOMIC VARIABLES, MARKET CONDITIONS, MARKET LENDING, MARKET PLAYERS, MATURITIES, MATURITY, MATURITY STRUCTURES, MFI, MFIS, MICRO FINANCE, MICRO FINANCE INDUSTRY, MICROFINANCE, MICROFINANCE INSTITUTION, MONETARY FUND, MONETARY STABILITY, MORAL HAZARD, MORTGAGE, MORTGAGE FINANCE, MORTGAGE LENDERS, MORTGAGE LENDING, MORTGAGE LOAN, MORTGAGE LOANS, MORTGAGE MARKET, MORTGAGE MARKETS, MORTGAGE PRODUCTS, MORTGAGES, NATIONAL BANK, NATIONAL TREASURY, NOMINAL INTEREST RATES, NON-PERFORMING LOAN, NON-PERFORMING LOANS, NPL, OUTSTANDING DEBT, PARTIAL GUARANTEES, PENSION, PENSION FUND, PENSION FUND REFORM, PENSION FUNDS, PENSION REFORM, PERSONAL LOANS, PORTFOLIO, PORTFOLIO OF MORTGAGES, PORTFOLIOS, PRICE STABILITY, PRIMARY MARKET, PRIVATE BANKS, REAL ESTATE INVESTMENT, REAL INTEREST, REAL INTEREST RATE, REAL INTEREST RATES, REGISTRY SYSTEM, REGULATORY FRAMEWORK, REGULATORY STRUCTURE, REPAYMENT, REPAYMENTS, RESERVE, RESERVE BANK, RETURN, RETURNS, RISK MANAGEMENT, RISK OF DEFAULT, SAFETY NET, SAVINGS ACCOUNT, SAVINGS DEPOSITS, SAVINGS PRODUCTS, SAVINGS RATES, SECONDARY MARKET, SECURITY MARKET, SHAREHOLDERS, SOCIAL SECURITY, SOURCES OF INCOME, STATE BANK, STATE GUARANTEE, T-BILL, T-BILL RATE, T-BOND, TECHNICAL ASSISTANCE, TERM DEPOSITS, TREASURIES, TREASURY, TREASURY BILL, TREASURY BILL RATE, TREASURY BILL RATES, TREASURY BILLS, TREASURY BOND, TREASURY BONDS, UNDERDEVELOPED CAPITAL MARKET, UNDERLYING ASSETS, UNDERLYING MORTGAGES, YIELD CURVE,
Online Access:	http://documents.worldbank.org/curated/en/2009/06/16420833/expanding-access-housing-finance-vol-2-2-task-two-study-examine-use-retail-funds-mortgage-lending http://hdl.handle.net/10986/12827
Tags:	Add Tag No Tags, Be the first to tag this record!