Brazil’s Caixa to further limit mortgage loans amid funding dry-up

Guillermo Parra-Bernal and Aluísio Alves – Reuters, 8/5/2015

Aug 5 State-controlled Caixa Econômica Federal, Brazil’s largest mortgage lender, plans to further limit disbursements of home loans amid a severe reduction in outstanding savings deposits in Latin America’s largest economy.

Starting Aug. 17, borrowers will be barred from taking more than one loan funded with savings deposits, a move aimed at preserving Caixa’s depleting stock of savings deposits available for housing credit, the Brasilia-based lender said in a statement on Wednesday.

Currently, homeowners with a mortgage loan at Caixa can apply for an additional one, should their disposable income levels permit it. In recent months, Caixa has imposed additional restrictions on certain types of loans in the wake of a steep decline in savings as unemployment soared.

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