The Housing Finance System

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A. Primary Housing Finance Market

A.1 Industry Structure and Performance
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Number of firms originating and funding mortgage loans1919 
Country Editor
A.1.1
Types of originating lenders/market share:A.1.2
Identify the 3 largest loan originating lenders Attijariwafa Bank, Banque Populaire, BMCE  
Country Editor
A.1.3
Are there (quasi) public mortgage lenders:YesYesYes
Country Editor
A.1.4
Universal/ commercial banksYesYesYes
Country Editor
A.1.4.1
Level of Non-Performing Mortgage Loans (90 days or more past due):A.1.6
Average 1997-2007 A.1.7
A.2 Size of Mortgage Finance Sector
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Total amount of home mortgage loans outstanding at the end of year in millions of USD: 20,949.35 USD (millions)18,110.29 USD (millions)
Country Editor
A.2.1
Total amount of home mortgage loans outstanding at the end of year as % of GDP (current) 19.19%17.56%
Country Editor
A.2.1.1
and as % of all credits outstanding  16.35%
Central Bank Statistics and WDI (Net Domestic Credit)
A.2.1.2
Total # of home mortgage originations made in calender year 71.03 thousand 
Bank Al-Maghrib
A.2.4
A.3 Housing Finance Products
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Mortgage products as % of all mortgages (approx.) in local currency:A.3.1
Fixed rate for life of loan 93%84%
Bank Al-Maghrib
A.3.1.1
Variable rate/indexed  26%
Bank Al Maghrib
A.3.1.2
Most prevalent type of foreign currency mortgage used:A.3.3
Fixed rate for life of loan4.5%  
Country Editor
A.3.3.1
Variable rate/indexed 4.2%  
Country Editor
A.3.3.2
Most frequent interest rates on fully amortizing:A.3.4
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 100%125%
CIH Bank - largest mortgage lender in Morocco
A.3.8.1
Typical LTV at origination 100%100%
CIH
A.3.8.2
Maximum term over which pmt is calculated?  25 years25 years
CIH
A.3.9
Mortgage pmt-to-income ratio A.3.10
Maximum pmt-to-income ratio (HH income) 50%50%
Nourreska
A.3.10.1
Maximum pmt-to-income ratio (Individual income) 50%50%
Nourreska
A.3.10.2
Typical pmt-to-income ratio (HH income) 33% 
Nourreska
A.3.10.3
Typical pmt-to-income ratio (Individual income) 33% 
Nourreska
A.3.10.4
A.4 Lending and Servicing Process
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Does the mortgage industry use standard principles/guidelines for underwriting? YesYes
Bank Al-Maghrib
A.4.1
Which institutions define underwriting rules? A.4.2
Central Bank/Ministry of Finance Yes 
Country Editor
A.4.2.1
Are loan originations conducted by others than employees of lenders?  Yes
USAID
A.4.3
A.5 Credit Risk Assessment
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Do credit bureaus exist?   Yes
Experian Credit Bureau
A.5.2
Are there legal/regulatory constraints to gaining access to credit information?  Yes
Bank Al Maghrib
A.5.2.1
Is mortgage default insurance available?YesYesNo
Country Editor
A.5.3
Are credit guarantee systems used? YesYesYes
CCG
A.5.4
Is there public sponsored MI / guarantee?  Yes
Affordable Housing Finance in Morocco - World Bank presentation
A.5.5
B. Funding Sources for Mortgages and the Secondary Mortgage Market
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
What are the main funding sources for mortgages?B.1
Retail funding (deposits/other)  primary
Financial Statements of CIH Bank
B.1.1
Wholesale funding: loans from other banks or corporations  secondary
Financial Statements of CIH Bank
B.1.2
Funding through mortgage bonds  Non-applicable 
Country Editor
B.1.3
Funding through securitization of mortgages  tertiary
Securitisation Law Reform: New Perspectives for Financing the Moroccan and Wider African Economy
B.1.4
C. Housing Microfinance
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Are non-collateralized housing micro-finance loans offered?  YesYes
Country Editor
C.1
Types of lenders operating in the housing micro-finance (HMF) sector:C.2
Commercial banks NoNo
CGAP
C.2.1
Specialized non-depository MFIs  YesYes
CGAP
C.2.2
NGOs YesYes
CGAP
C.2.3
Others NoNo
CGAP
C.2.4
None NoNo
CGAP
C.2.5
Level of NPLs (>90 days past due) in HMFC.4
Are non-collateralized but secured housing finance products offered (e.g. secured by pension or insurance savings)  Yes
La Nouvelle Tribune
C.5
Lowest income decile served with all non-collateralized housing lending products  1 decile
FBPMC
C.6
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Notes: 2010 = 100
Notes: 2010 = 100
Notes: 2010 = 100
Notes: 2010 = 100
Notes: 2010 = 100
Notes: Called associations
Notes: Called associations
Notes: Depends upon registration status
Notes: Depends upon registration status
Notes: Depends upon registration status
Notes: Depends upon registration status
Notes: Depends upon registration status
Notes: Depends upon registration status
Notes: Depends upon registration status
Notes: Depends upon registration status
Notes: Depends upon registration status
Notes: Depends upon registration status
Notes: Depends upon registration status
Notes: Depends upon registration status
Notes: Depends upon registration status
Notes: Depends upon registration status
Notes: Depends upon registration status
Notes: ex. Fogalef Loans
Notes: ex. Fogalef Loans
Notes: Fogalef loans are subsidized mortgage loans for public sector teachers members of the Mohammed VI foundation
Notes: Fogalef loans are subsidized mortgage loans for public sector teachers members of the Mohammed VI foundation
Notes: Fogalef: for members of the Mohammed VI foundation
Notes: Fogalef: for members of the Mohammed VI foundation
Notes: Fogalef: for members of the Mohammed VI foundation
Notes: Fogalef: for members of the Mohammed VI foundation
Notes: Fogarim
Notes: Fogarim
Notes: FOGARIM scheme shares the credit risk b/w government and banks, for lending to informal sector,low-income households
Notes: FOGARIM scheme shares the credit risk b/w government and banks, for lending to informal sector,low-income households
Notes: FOGARIM scheme shares the credit risk b/w government and banks, for lending to informal sector,low-income households
Notes: FOGARIM scheme shares the credit risk b/w government and banks, for lending to informal sector,low-income households
Notes: FOGARIM scheme shares the credit risk b/w government and banks, for lending to informal sector,low-income households
Notes: FOGARIM scheme shares the credit risk b/w government and banks, for lending to informal sector,low-income households
Notes: FOGARIM scheme shares the credit risk b/w government and banks, for lending to informal sector,low-income households
Notes: FOGARIM scheme shares the credit risk b/w government and banks, for lending to informal sector,low-income households
Notes: FOGARIM scheme shares the credit risk b/w government and banks, for lending to informal sector,low-income households
Notes: FOGARIM scheme shares the credit risk b/w government and banks, for lending to informal sector,low-income households
Notes: FOGARIM scheme shares the credit risk b/w government and banks, for lending to informal sector,low-income households
Notes: FOGARIM scheme shares the credit risk b/w government and banks, for lending to informal sector,low-income households
Notes: Government guarantee for informally employed, low-income households under FOGARIM scheme.
Notes: Government guarantee for informally employed, low-income households under FOGARIM scheme.
Notes: Hourly minimum wage multiplied by 160 hours to get a typical monthly rate.
Notes: Hourly minimum wage multiplied by 160 hours to get a typical monthly rate.
Notes: Hourly minimum wage multiplied by 160 hours to get a typical monthly rate.
Notes: Hourly minimum wage multiplied by 160 hours to get a typical monthly rate.
Notes: Interest rate subsidies for households ended in 2003. Existing borrowers continue to benefit for the duration of loan.
Notes: Laws that deal with lending for the acquisition of real estate, not specific to mortgage
Notes: Loans from other banks, corporations and corporate bonds.
Notes: Loans from other banks, corporations and corporate bonds.
Notes: Loans from other banks, corporations and corporate bonds.
Notes: LTV upto 100% for moroccan nationals. For foreign nationals this is about 70%.
Notes: LTV upto 100% for moroccan nationals. For foreign nationals this is about 75%.
Notes: LTV upto 100% for moroccan nationals. There is no law.
Notes: Monthly minimum wage nationwide, not urban
Notes: Mortgage guarantee fund set up by the Government is an indirect subsidy.
Notes: Mortgage guarantee fund set up by the Government is an indirect subsidy.
Notes: Percentage of non-agricultural jobs
Notes: Percentage of the labor force currently working independently (30.3%) or as an employer (2.4%)
Notes: Securitization effective since 2002.
Notes: Securitization effective since 2002. Issuance to date is just $500 mn
Notes: Securitization effective since 2002. Issuance to date is just $500 mn.
Notes: Securitization effective since 2002. Issuance to date is just $500 mn.
Notes: Sq. Meters
Notes: Table: Breakdown of bank credit by economic purpose (Ventilation du crédit bancaire par objet économique)
Notes: Table: Breakdown of bank credit by economic purpose (Ventilation du crédit bancaire par objet économique)
Notes: Table: Breakdown of bank credit by economic purpose (Ventilation du crédit bancaire par objet économique)
Notes: Table: Breakdown of bank credit by economic purpose (Ventilation du crédit bancaire par objet économique)
Notes: Table: Breakdown of bank credit by economic purpose (Ventilation du crédit bancaire par objet économique)
Notes: Table: Breakdown of bank credit by economic purpose (Ventilation du crédit bancaire par objet économique)
Notes: Table: Breakdown of bank credit by economic purpose (Ventilation du crédit bancaire par objet économique)
Notes: Table: Breakdown of bank credit by economic purpose (Ventilation du crédit bancaire par objet économique)
Notes: Table: Breakdown of bank credit by economic purpose (Ventilation du crédit bancaire par objet économique)
Notes: Table: Breakdown of bank credit by economic purpose (Ventilation du crédit bancaire par objet économique)
Notes: Table: Breakdown of bank credit by economic purpose (Ventilation du crédit bancaire par objet économique)
Notes: Table: Breakdown of bank credit by economic purpose (Ventilation du crédit bancaire par objet économique)
Notes: Table: Breakdown of bank credit by economic purpose (Ventilation du crédit bancaire par objet économique)
Notes: Table: Breakdown of bank credit by economic purpose (Ventilation du crédit bancaire par objet économique)
Notes: Table: Breakdown of bank credit by economic purpose (Ventilation du crédit bancaire par objet économique)
Notes: Technically, all home buyers who pay interest on a mortgage can claim the deduction.