A. Primary Housing Finance Market
A.1 Industry Structure and Performance
| Variable | End of 2016 | End of 2015 | End of 2014 | Sources | Var ID |
|---|---|---|---|---|---|
| Number of firms originating and funding mortgage loans | 14 | 13 | 13 | Egyptian Financial Supervisory Authority (EFSA) | A.1.1 |
| Types of originating lenders/market share: | A.1.2 | ||||
| Universal/ commercial banks | 75.5% of total | 66.7% of total | 60.5% of total | Egyptian Financial Supervisory Authority (EFSA) | A.1.2.1 |
| Non-depository financial institutions specialized in housing finance | 24.5% of total | 33.3% of total | 39.5% of total | Egyptian Financial Supervisory Authority (EFSA) | A.1.2.3 |
| Identify the 3 largest loan originating lenders | Taamir Mortgage Finance Company, Housing and Development Bank, National Bank of Egypt | Taamir Mortgage Finance Company, Housing and Development Bank, National Bank of Egypt | Taamir Mortgage Finance Company, Housing and Development Bank, National Bank of Egypt | Country Editor | A.1.3 |
| Are there (quasi) public mortgage lenders: | Yes | Yes | Yes | Country Editor | A.1.4 |
| Universal/ commercial banks | Yes | Yes | Yes | Country Editor | A.1.4.1 |
| Other depository institutions (savings and loans/mutual savings and credit institutions) | No | No | No | Country Editor | A.1.4.2 |
| Non-depository financial institutions specialized in housing finance | Yes | Yes | Yes | A.1.4.3 | |
| General non-depository financial institutions | No | No | No | Country Editor | A.1.4.4 |
| Others (e.g. insurance co, pension funds, labor tax funds) | No | No | No | Country Editor | A.1.4.5 |
| Level of Non-Performing Mortgage Loans (90 days or more past due): | A.1.6 | ||||
| as a % of # of loans | 2% | MFF | A.1.6.1 | ||
| Average 1997-2007 | A.1.7 | ||||
| Lowest decile of the income distribution served by the dominant mortgage lenders | 45 decile | MFF | A.1.8 | ||
A.2 Size of Mortgage Finance Sector
| Variable | End of 2016 | End of 2015 | End of 2014 | Sources | Var ID |
|---|---|---|---|---|---|
| Total amount of home mortgage loans outstanding at the end of year in millions of USD: | 691.34 USD (millions) | HOFINET Figures | A.2.1 | ||
| Total amount of home mortgage loans outstanding at the end of year as % of GDP (current) | .26% | HOFINET Figures | A.2.1.1 | ||
| Total # of home mortgage loans outstanding at the end of year | 42,069 thousand | 39,437 thousand | 36,016 thousand | Country Editor | A.2.2 |
| Total amount of home mortgages made in calendar year in millions of USD | 100 USD (millions) | MFF | A.2.3 | ||
| Total # of home mortgage originations made in calendar year | 3,034 thousand | MFF | A.2.4 |
A.3 Housing Finance Products
| Variable | End of 2016 | End of 2015 | End of 2014 | Sources | Var ID |
|---|---|---|---|---|---|
| Mortgage products as % of all mortgages (approx.) in local currency: | A.3.1 | ||||
| Fixed rate for life of loan | 30% | MFF | A.3.1.1 | ||
| Variable rate/indexed | 70% | MFF | A.3.1.2 | ||
| Variable rate/discretionary | 30% | HOFINET estimation | A.3.1.3 | ||
| Most prevalent type of foreign currency mortgage used: | A.3.3 | ||||
| Most frequent interest rates on fully amortizing: | A.3.4 | ||||
| discretionary ARM/10 year term | 12.21% | MFF | A.3.4.3 | ||
| Typical lender fees associated with mortgage origination: | A.3.6 | ||||
| Typical third party fees associated with mortgage origination: | A.3.7 | ||||
| Loan-to-Value (LTV) on first mortgage: | A.3.8 | ||||
| Maximum LTV | 90 | 90 | 90 | MFF | A.3.8.1 |
| Typical LTV at origination | 70 | A.3.8.2 | |||
| Maximum term over which pmt is calculated? | 20 years | 20 years | 20 years | Country Editor | A.3.9 |
| Mortgage pmt-to-income ratio | A.3.10 | ||||
| Maximum pmt-to-income ratio (HH income) | 40% | 40% | 40% | MFF | A.3.10.1 |
| Maximum pmt-to-income ratio (Individual income) | 40% | 40% | 40% | Research | A.3.10.2 |
| Typical pmt-to-income ratio (HH income) | 25% | MFF | A.3.10.3 | ||
| Typical pmt-to-income ratio (Individual income) | 40% | MFF | A.3.10.4 | ||
A.4 Lending and Servicing Process
| Variable | End of 2016 | End of 2015 | End of 2014 | Sources | Var ID |
|---|---|---|---|---|---|
| Does the mortgage industry use standard principles/guidelines for underwriting? | Yes | Yes | Yes | A.4.1 | |
| Which institutions define underwriting rules? | A.4.2 | ||||
| Central Bank/Ministry of Finance | No | No | A.4.2.1 | ||
| Secondary market facility | No | No | No | Country Editor | A.4.2.2 |
| Major Lender | No | No | No | Country Editor | A.4.2.3 |
| Other | Yes | Yes | Yes | A.4.2.4 | |
| Are loan originations conducted by others than employees of lenders? | No | No | No | Country Editor | A.4.3 |
| % of appraisals done by employees of lenders | 40% | MFF | A.4.4 | ||
| Do third party servicing institutions exist? | No | MFF | A.4.5 | ||
| % of loans serviced by originators/lenders | 100% | MFF | A.4.6 | ||
A.5 Credit Risk Assessment
| Variable | End of 2016 | End of 2015 | End of 2014 | Sources | Var ID |
|---|---|---|---|---|---|
| Do credit bureaus exist? | Yes | Yes | Yes | iScore - The Egyptian Credit Bureau | A.5.2 |
| Are there legal/regulatory constraints to gaining access to credit information? | Yes | Yes | Yes | iScore - The Egyptian Credit Bureau | A.5.2.1 |
| Is mortgage default insurance available? | Yes | Yes | Yes | Country Editor | A.5.3 |
| When did it begin operating? | 2003 | 2003 | 2003 | Mortgage Finance Fund | A.5.3.1 |
| What is the typical MI product? | Default insurance 3 months provided by MFF | MFF | A.5.3.2 | ||
| Number of private mortgage insurers | 2 | MFF | A.5.3.3 | ||
| Are credit guarantee systems used? | Yes, Partially | MFF | A.5.4 | ||
| Is there public sponsored MI / guarantee? | Yes | MFF | A.5.5 | ||
| What share of total annual mortgage production is insured/guaranteed? | Not available | A.5.7 |
B. Funding Sources for Mortgages and the Secondary Mortgage Market
| Variable | End of 2016 | End of 2015 | End of 2014 | Sources | Var ID |
|---|---|---|---|---|---|
| What are the main funding sources for mortgages? | B.1 | ||||
| Retail funding (deposits/other) | primary | primary | primary | Country Editor | B.1.1 |
| Wholesale funding: loans from other banks or corporations | secondary | secondary | secondary | Country Editor | B.1.2 |
| Funding through mortgage bonds | Non-applicable | MFF | B.1.3 | ||
| Funding through securitization of mortgages | Non-applicable | MFF | B.1.4 | ||
| Other | tertiary | MFF | B.1.5 | ||
| What % of Residential Mortgage Backed Securities is issued by centralized conduit or liquidity facility? | Non-applicable | B.2 | |||
| Who are the investors in RMBS? | Non-applicable | B.3 | |||
C. Housing Microfinance
| Variable | End of 2016 | End of 2015 | End of 2014 | Sources | Var ID |
|---|---|---|---|---|---|
| Are non-collateralized housing micro-finance loans offered? | No | MFF | C.1 | ||
| Types of lenders operating in the housing micro-finance (HMF) sector: | C.2 | ||||
| Commercial banks | No | MFF | C.2.1 | ||
| Specialized non-depository MFIs | Non-applicable | C.2.2 | |||
| NGOs | No | MFF | C.2.3 | ||
| Others | No | MFF | C.2.4 | ||
| None | No | MFF | C.2.5 | ||
| Level of NPLs (>90 days past due) in HMF | C.4 | ||||
| as a % of loans | 2% | MFF | C.4.1 | ||
| Are non-collateralized but secured housing finance products offered (e.g. secured by pension or insurance savings) | No | MFF | C.5 | ||