What are the specific elements of GHIF home mortgage programs?
Governments and other players in the Housing Programs need to take strong actionto enablethe many parts of a viable program to fit together, attract loan capital and be sustainable. GHIF’s programs are designed to build the primary home loan market in ways that enable creating conditions for a workable secondary market. Key components of such a program include the following: standardized mortgages fungible property title capped variable or fixed rate for both short- and long-term loans possible balloon loan term availability of long-term capital funds for specified durations a sinking fund for capital recuperation capital guarantees, of various sorts a system for monitoring the performance of participating lenders whenever feasible, a mandatory homeowner savings program. After a primary market is operating to sufficient scale and tested, the secondary market can gain traction. This means that financial institutions or trusts can repurchase securitized loans that meet strict and uniform
