Housing Finance
Although there is a growing demand for housing in many developing countries, the absence of efficient housing finance systems puts home ownership out of the reach of most earners and young couples, people who would be prime candidates for mortgage loans in a more welldeveloped market. In recent years, national governments and international financial institutions have sought to broaden access to housing finance by reducing the risks faced by mortgage lenders. This in turn enables banks and others to offer more attractive terms and conditions to prospective house buyers. Business opportunities in housing finance abound, but companies that are just getting started need help understanding the legal and financial landscape and managing risks.
Strategic and Business Planning
CMHC International has helped the governments of India, China, Egypt, Mali, Serbia, and the West Bank and Gaza and their emerging mortgage sectors establish mortgage default insurance companies, introduce new mortgage products and/or improve the performance of their housing finance institutions. The result will be more affordable housing, wealth generation and social advancement.
CMHC International works with its clients to:
- conduct feasibility studies
- design products and programs
- prepare strategic plans and business plans for new and existing organizations
- implement operations
Predicting how well a jurisdiction will support new financial instruments or institutions requires a solid understanding of a country’s economic, political and regulatory environment and in-depth knowledge about its housing and housing finance markets. CMHC International can provide the analysis needed to identify barriers and opportunities and generate a business plan, including preliminary financial projections and an implementation strategy.
Usually developed in collaboration with our clients, the business plan seeks to attract and educate investors by providing the roadmap needed to:
- set up a primary or secondary mortgage financing institution
- develop and price mortgage products, mortgage insurance or funding instruments
- anticipate costs and timelines
- determine staffing requirements, especially qualifications for senior management
- manage risks
- illustrate potential business performance
Creating New Institutions and Strengthening Mortgage Lending
Need help establishing or developing your housing bank or mortgage insurance company, or issuing a new line of mortgage-backed securities? CMHC International can help. Let our experts help you incorporate your institution, hire its initial management team, and structure the new organization, guiding senior management through the setting up of key business and financial functions.
CMHC International experts can also work with a new organization to define its business requirements and develop its business operations. That can include designing management systems and practices, creating operating procedures, and developing policies, processes and systems. We’ll even show you how to develop external relations and partnerships to build a strong network of stakeholders.
CMHC International has been sending teams of experts into countries on every continent for more than a decade. In 2000 we helped China explore the potential for mortgage insurance and securitization systems. Starting in 1998, we helped the Russian Ministry of Housing and Construction establish building codes for low-rise houses and upgrade quality control systems for the nation’s building products. In 1999, we helped the Palestinian Authority set up a public and privately owned mortgage and housing company in Ramallah.
If your organization is already off the ground, we can help you with refinements such as:
- streamlining your administrative and risk management processes, including loan origination and default management
- hiring and training qualified staff
- selecting and customizing information technology products, such as automated underwriting software
- providing advice on managing business performance
- designing and pricing new mortgage and securitization products
Let our technical experts provide you with practical assistance for any institution-building project.
Operational Training and Capacity Building
CMHC International provides individual coaching and group training in many aspects of housing and housing finance, from business planning and product design to underwriting and risk management. With a half-century of experience in Canada and around the world, we can help you acquire the skills you need to build commercially viable housing finance institutions and run them efficiently.
CMHC International can help you:
- give your senior officers the legal and financial foundations they need to run an effective housing bank or mortgage insurance company
- learn how to streamline loan origination, risk assessment and default management processes and how to compare and assess credit products
- discover how other jurisdictions have adapted their policy, legal and regulatory frameworks to support a mortgage industry
- find out how to lobby for the right policy reforms
CMHC International has developed programs for underwriters, mortgage risk assessors and default managers in Canada and around the world. We have delivered customized training to front-line credit officers, chief financial officers, and bank executives.
Learn about housing finance product design, credit scoring and insurance servicing. Topics for workshops and apprenticeships are as varied as our clients. They have included:
- fundamentals of mortgage funding (options from liquidity facilities to mortgage bonds and securitization with required infrastructure; payment guarantees to investors)
- securitization, including operational considerations and functional steps for creating mortgagebacked securities
- policy options for social housing and social housing programs
- policy and product lessons for mortgage default insurance and unique features of managing an insurance fund
- new technology and information systems
You can send your senior executives for customized training with us in Canada or let us organize a training workshop for your underwriters or credit managers at home. We’ll also train your trainers and guide them through their first sessions of training delivery.
Whether you are a national housing ministry looking to develop the decision-making skills of your senior officials or a chief executive officer in search of the latest strategic planning methods, we have a training program for you.
Selected Projects
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