Background on Fovissste and its Relevance
The Fondo de Vivienda del Issste (Fovissste) is a Mexican government-owned housing finance company that provides credit for the acquisition of homes. With over 873,000 active financing cases, Fovissste plays a crucial role in helping Mexican families achieve their dream of homeownership. Recently, Fovissste announced a new program called “Support for Accredited Persons” to address issues faced by some creditors with deteriorated loans.
New Program Details
As part of this new program, Fovissste began issuing the first Termination Certificates to accredited individuals who had paid more than twice the initial debt amount. The program aims to facilitate the liquidation of deteriorated credits through mechanisms that help creditors overcome their financial challenges.
- Eligible Criteria: The program targets individuals who have paid two or more times the original loan amount, have financing with over 30 years of history, or owe only 10% of the granted loan.
- Debt Forgiveness: As part of the program, some debt forgiveness is provided to eligible creditors.
Case Studies
During the program’s kickoff event in Quintana Roo, Fovissste’s executive council member Jabnely Maldonado Meza handed out the termination certificates. Two beneficiaries, Guadalupe Góngora and Jorge Davis Martín, received significant debt reductions:
- Guadalupe Góngora: She had paid more than twice her credit and received a debt reduction of 226,000 pesos.
- Jorge Davis Martín: He settled his credit with a debt reduction of 99,700 pesos.
Scope of Deteriorated Loans
It is estimated that approximately 400,000 out of the 873,000 active credits managed by Fovissste are affected by some form of deterioration.
Key Questions and Answers
- What is the new program called? The program is named “Support for Accredited Persons.”
- Who is eligible for this program? The program targets individuals who have paid two or more times the original loan amount, have financing with over 30 years of history, or owe only 10% of the granted loan.
- What benefits does this program offer? The program offers debt forgiveness and termination certificates to eligible creditors.
- How many deteriorated loans are there in Fovissste’s portfolio? Around 400,000 out of the 873,000 active credits managed by Fovissste are considered deteriorated.
