Background on Fovissste and Its Relevance
The Fondo de Vivienda del Issste, commonly known as Fovissste, is a Mexican government-owned housing finance institution that provides credit for the construction, acquisition, and improvement of residential properties. Established in 1972, Fovissste has played a crucial role in helping millions of Mexican families achieve their dream of homeownership. With over 400,000 accredited individuals, Fovissste’s recent announcement directly impacts a significant portion of its clientele.
New Measures to Assist with Problematic Loans
In response to the financial difficulties faced by some borrowers, Fovissste has introduced new support measures to aid in the resolution and liquidation of 400,000 out of its total 850,000 active loans. These measures were approved by the ISSSTE’s Board of Directors during an extraordinary fourth session.
Key Provisions of the New Support Measures
- Interest Waiver: For 50,000 derechohabientes (borrowers), interest charges will be waived.
- Waiver of Overdue Debt: Any overdue debt will be forgiven.
- Respect for Contractual Terms: The loan’s interest rate will remain unchanged, ranging from 4% to 6.5%, as per each borrower’s contract.
- Congelation of Remaining Balance: The remaining loan balance will be frozen.
- Elimination of Annual Updates: The annual update based on the Unidad de Medida y Actualización (UMA) will be eliminated.
These adjustments are automatic and do not require any paperwork or notarization.
Fovissste’s Ongoing Efforts to Resolve Credit Issues
According to the Fovissste head, these new support measures close the scheme designed to resolve and liquidate problematic credits. This scheme consists of seven lines of action, ensuring that borrowers receive the necessary assistance to overcome their financial challenges.
Key Questions and Answers
- Who is eligible for these new support measures? The new measures apply to 50,000 derechohabientes (borrowers) facing difficulties in repaying their loans.
- What specific benefits do borrowers receive? Benefits include the waiver of interest, overdue debt, and frozen remaining loan balance. Additionally, contractual terms remain unchanged, and annual updates based on UMA are eliminated.
- Are there any requirements or paperwork needed to receive these benefits? No, the new support measures are automatic and do not require any paperwork or notarization.
- How many borrowers will these measures impact? These new support measures will directly benefit 400,000 out of Fovissste’s total 850,000 active loan clients.
- Is this the end of Fovissste’s efforts to help borrowers? No, these new measures are part of a broader seven-line action plan to resolve and liquidate problematic credits, ensuring borrowers receive the necessary assistance.
