Spanish capital one
In addition, in view of the experience to date, and in order to restore the confidence of borrowers, provisions are introduced with the aim of enhancing legal certainty, transparency and understanding of contracts and their clauses, as well as a fair balance between the parties.
Directive 2014/17/EU recognizes in its recital (3) that “The financial crisis has shown that irresponsible behavior by market participants can undermine the foundations of the financial system, (…) and can have serious social and economic consequences”. In particular, the Directive highlights in its recital (4) that “the Commission has identified a number of problems in mortgage markets in the Union relating to irresponsible lending and borrowing, as well as the potential scope for irresponsible behavior among market participants, including credit intermediaries”.
The subprime mortgage crisis
The mortgage crisis, up to October 2008, had resulted in numerous financial bankruptcies, bank nationalizations, constant interventions by the central banks of the main developed economies, deep falls in stock prices and a deterioration of the real global economy that led to the entry into recession of some of the most industrialized economies.
The information available seems to indicate that the origin of the crisis lies in an intentional or unintentional mispricing of risks, which was amplified by the automation of the stock market, the misinformation of individual investors and the unprecedented liquidity of the 2001-2007 period. It also appears that banks raised liquidity through the technique of withdrawing borrowed money from their assets by “placing covered bonds or CDOs, CLOs and CMOs or other obligations backed by bundles of corporate and mortgage assets” The subprime risk was transferred to debt bonds and securitizations, and from there to pension and investment funds.  In fact, rating agencies (such as Standard & Poors (S&P) or Moody’s) began to be investigated after the crisis for their possible liability, and only when the crisis broke out did the rating agencies tighten their rating criteria. 13] Also, American and European legislators began to consider tightening the criteria for granting mortgages. 14]
Types of mortgage loans
It is the way you define how to make the monthly payments of the loan, which include principal, interest and insurance. Depending on the product, you can choose the amortization system that best suits your conditions such as income, term in which you want to pay the obligation, if you want this rate to be fixed or not, among others.
It is a unit whose value depends on inflation, that is to say that the value of the installment and the balance of the credit can vary depending on the behavior of inflation, which can generate an increase or decrease.
Since salaries in Colombia generally also depend on inflation, this avoids excessive increases such as those that occurred with the UPAC, since the UVR rises, so will income.
In this modality, the installment expressed in UVR is the same throughout the life of the loan, but when converted into pesos, the installment will vary from month to month in the same proportion as inflation (insurance is added to the installment). Consequently, under this system the installment in pesos is lower at the beginning of the loan and increases as inflation increases. On the other hand, the principal balance begins to decrease after 20% of the loan term.
Causes of the 2008 subprime crisis
The Family Housing Subsidy is a monetary aid granted by the state to complete the down payment of your home. This contribution is granted once in a lifetime to the beneficiary, and delivers a maximum value of $23,437,260. In order to apply for it you must comply with the following:
The approval time ranges between 3 to 5 business days after the complete filing of the requested documentation, depending on the type of activity and the ease with which the information can be verified.
For new housing, once the construction company requests it with the delivery certificate and registration receipt. When the disbursement is made immediately the customer service area will contact you to notify you.
One month after the disbursement of the credit to the builder in the case of new housing, in the case of used housing, one month after the disbursement to the seller of the property.
You can pay your monthly installment through the electronic payment by PSE, available in our web page. In addition, you can make your payment at chain stores such as: Exito, Carulla and Surtimax, Colsubsidio, Banco de Occidente and Banco Av Villas, and at Baloto points.