Housing Finance

At the macro level, housing finance generates economic growth via job creation, entrepreneurship, and economic linkages. At the individual level, it makes it possible both for people to have shelter and a real asset, which might be the largest investment a family makes in a lifetime. In addition, housing finance activities spur expansion in financial and capital markets. For these reasons, IFC works with clients to increase access to housing finance in emerging markets and consequently, to increase affordable housing.

In 2002, IFC’s Housing Finance unit was created, through which IFC launched a more concerted effort to engage in innovative and value-added housing finance activities. These activities include investment services, advisory services, and resource support. IFC’s approach is to strategically address each country’s needs in accordance with its financial sector development.

Our clients benefit from long-term lines of credit; partial guarantees of local currency credit issues to foster local currency mortgage lending; and warehouse lines to support securitization activities. In addition, mortgage market development occurs from strong primary market competition, and, where appropriate, secondary market conduits, making institution building one of IFC’s key goals. Because there is a critical need in many markets to foster the production of affordable housing, we are actively pursuing the establishment of construction financing facilities.

Given the rapid pace of innovation in this field, the Housing Finance unit is constantly developing new products and services. It works closely with IFC’s Treasury Department and the World Bank to develop an integrated approach to housing finance.

For more information on IFC’s Housing Finance Investment and Advisory Services, contact:

Douglas Grayson | Principal Financial Specialist | T: 202- 458-4184