This is the Situation of Infonavit’s Overdue Loans

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El Heraldo de México

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Publicado: 7/10/2024 · 9:04 a.m. MX | Actualizado: 7/10/2024 · 9:04 a.m. MX

Out of an average of 5.5 million active loans, 14.94% were overdue in August, which equates to 821,700 cases of non-payment, according to the National Workers’ Housing Fund Institute (Infonavit).

According to the Institute’s figures, in the eighth month of the year, 18.64% of the total loaned amount was overdue.

The high number of overdue loans can be explained, according to Infonavit, by the fact that before 2019, the Institute did not disclose the actual figures of its overdue loan portfolio. “Discretionary decisions were made to artificially keep the Delinquency Rate low.”

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Additionally, the Institute reported that it used to sell part of its overdue loans to collection agencies and real estate companies to remove these loans from its balance sheet and “clean” its portfolio.

Therefore, at the end of 2019, during the implementation of the International Financial Reporting Standards (IFRS), irregularities were detected in the classification of the delinquency indicator, as over 116,000 loans that were overdue had been classified as current by applying collection solutions without the borrowers’ consent.

By making the actual figures transparent, the Delinquency Rate (ICV, by its Spanish acronym) increased; for this reason, ICV levels are not comparable between the 2012-2018 administration and the 2019-2024 period due to this reclassification.

However, it clarified that this did not represent a real deterioration of the mortgage portfolio, as the cash flow and loan reserve indicators continued to reflect the Institute’s good financial health.

In fact, the previous administration, led by Carlos Martínez, announced in a morning press conference that, as of last June, 5.238 million people had regularized their payments and had been supported through restructurings, the Shared Responsibility program, COVID measures, early settlement discounts, and other initiatives aimed at helping borrowers catch up on their mortgages.

Nota publicada originalmente en El Heraldo de México.

El Heraldo de México