Citation URL: http://www.urban.org/DouglasBDiamond

This report chronicles developments in housing finance in Hungary from 1994 to 1998. Topics covered include evolution of official housing policy, use of mortgage loans, housing finance subsidies, credit risk management, development of sounder lending practices, credit enhancement structure, long-term funding, and means to foster competition among lenders. Attached is a report submitted by the expert committee of the National Housing Policy Council on revising housing subsidies.

This report builds upon a previous assessment of the Croatian housing sector (Croatia Housing Sector Assessment, Urban Institute, 406623) and presents specific recommendations concerning one of the nine issue areas identified in that report--technical assistance in housing finance. This report provides background on the housing sector, discusses housing finance, and defines the problems facing the Croatian housing sector. Included is a brief review of technical assistance provided to three Eastern European countries and recommendations for Croatia. Three annexes cover economic conditions relevant to housing finance, an overview of the housing sector, and an overview of the housing finance sector.

These proceedings summarize the Central and Eastern European (CEE) Housing Loan Recovery Colloquium held in Budapest, Hungary, on December 16 and 17, 1996. The main participant countries were Hungary, Slovakia, and Croatia. Representatives from other countries, including Poland, the Czech Republic, Germany, France, and the United States, also attended. The purpose of the colloquium was to provide an international exchange of implementation and policy experience on housing loan recovery in CEE countries—an area that needs strengthening in the mortgage lending programs of most countries in this region.

This paper is one of a series of periodic reports describing the status of the housing policy component of the 186-HG-I program for Hungary. Eight policy reforms in the area of housing finance are reviewed, accomplishments are noted, and remaining issues are discussed. An annex frames the choices between a "German-style" and an "American-style" secondary mortgage market in the context of what is actually done in Germany, the United States, and several other countries.

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