Isabel González García
Land Registrar
Experiences with data management
to improve land administration in ECE countries
Sofia, 23-24 april, 2009
In the European Securitisation Forum Autumn
2007, report’s ranking of European
securitisation issuances by country of
collateral, the Spanish securitisation market
had consolidated its second place position,
and that is due to the strong position in the
residential mortgaged-backed security
sector.
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Different types of lenders offering a great
variety of mortgages, Banks and Saving banks
(Cajas de Ahorro).
There is a high need for the mortgage
funding, due to the preference of acquiring a
dwelling in property than renting.
The legal framework for this is the Spanish
mortgage market law according to article 47
of the Spanish Constitution, which establishes
the right to access a dwelling.
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Variable rate –European Central Bank index is
the most commonly used-.
Fixed rate. The interest rate does not vary
throughout the lifetime of the mortgage.
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The lending Institutions offer different types of
credits and loans.
Those loans are “covered” by mortgages that act
as guarantee.
Lending Institutions can go for refinancing by
issueing two types of bonds:
1. Covered bonds
2. Mortgage bonds
◦ Guaranteed by the
mortgage portfolio of
the issueing entity –
except by those that
cover the mortgage
bonds◦ Do not need special
registration
◦ Any mortgage registered
at the time
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Mortgage bonds:
◦ Guaranteed by the
mortgage specially
mentioned on the deed.
◦ Do not need special
registration.
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They become the key in order to ensure the
loans and credits are adjusted to the value of
the property that serves as a guarantee.
These companies are submitted to very strict
regulation to saveguard their indepence.
When the lending credit institution has issued
bonds and has a rating company of its own,
they must create a technical commission to
verify their acting.
Covered and mortgages bonds
Mortgages in guarantee
Credits and loans
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Development of the mortgage bond market
More flexibility to the issuers of mortgagerelated securities.
Improvement in the legal position of the
holders of those bonds.
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To preserve the importance of a strong
mortgage market.
Legal developments that modernise the
regulatory framework for mortgages.
More flexibility in the means of refinancing
for the Spanish financial institutions.
Wider range of mortgage-related products.
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Larger mortgage portfolio not only real
state assets located in Spain, but also in the
territory of the European Union.
Liquid assets: the issuance may be backed
by certain types of low risk and high
liquidity fixed income securities, the so
called “replacement assets”.
More investors
Additional use of the funds