lending public market share support. Sources: author’s interviews conducted between December 2011 and February 2012. Targeting: *means-tested (income), **price of unit and/or volume of financing (self-targeting), *** categorized (e.g. young families); all other measures are untargeted. § applies also to FX lending. Abbreviations: CP Consumer Protection, CI Credit Institution, FX Foreign Currency, – – – LC Local Currency, LTV Loan-to-value ratio, PTI Debt to income ratio, IO Interest-only. – – – – Product Design Simulation: Foreign Currency Mortgages vs. Price-level Adjusted Mortgages Case: Hungary, Swiss Franc loans underwritten in 2007 vs. price-level adjusted mortgage (outstanding balance adjusted by inflation rate Simulation Inputs Foreign Currency Mortgage (actual) Price-level Adjusted Mortgage (alternative) Source: Author’s simulation provided for the Wharton School/University of Pennsylvania International Housing Finance Course, June 2012 Additional Data Figure Housing Loan Pricing Conditions, House Price Developments New lending for housing, interest LC and EUR, Dec House Prices (existing or all flats), Q I 2005 = 100 2011
lending market share public support. Sources: author’s interviews conducted between December 2011 and February 2012. Targeting: *means-tested (income), **price of unit and/or volume of financing (self-targeting), *** categorized (e.g. young families); all other measures are untargeted. § applies also to FX lending. Abbreviations: CP – Consumer Protection, CI – Credit Institution, FX – Foreign Currency, LC – Local Currency, LTV – Loan-to-value ratio, PTI – Debt to income ratio, IO – Interest-only. Product Design Simulation: Foreign Currency Mortgages vs. Price-level Adjusted Mortgages Case: Hungary, Swiss Franc loans underwritten in 2007 vs. price-level adjusted mortgage (outstanding balance adjusted by inflation rate Simulation Inputs Foreign Currency Mortgage (actual) Price-level Adjusted Mortgage (alternative) Source: Author’s simulation provided for the Wharton School/University of Pennsylvania International Housing Finance Course, June 2012 Additional Data Figure Housing Loan Pricing Conditions, House Price Developments New lending for housing, interest LC and EUR, Dec 2011 House Prices (existing or all flats), Q I 2005 = 100
CEE_Mortgages_NBP_PAPER_Final_3_12_14.docx