The National Bank of Romania, in exercising its role as provider of quality information, publishes the available data on mortgage-backed loans as at 31 December 2015.
The data on borrowers refer to individuals, identified based on their personal identification code and reported by reporting institutions (credit institutions and non-bank financial institutions registered with the Special Register of the National Bank of Romania) pursuant to NBR Regulation No. 2/2012 on the organisation and functioning of the Central Credit Register operated by the National Bank of Romania, as subsequently amended. The data cover borrowers’ exposures equal to or higher than lei 20,000 and comprise only loans, leaving aside commitments such as letters of guarantee.
The foreclosure information is taken from the special reports of banks.
Overview
The number of individuals with mortgage-backed loans totals 474,420 and the loan stock amounts to lei 77.27 billion, of which:
- 174,160 borrowers took housing loans, their stock totalling lei 28.67 billion;
- 155,012 borrowers took other real estate investment loans, their stock totalling lei 24.06 billion;
- 163,007 borrowers took mortgage-backed consumer loans, their stock totalling lei 24.54 billion.
Mention should be made that some individuals took several types of loans.
Separately, 6,891 borrowers were reported as having mortgage loans that were transferred during 2012-2015, the stock of which totalled lei 2.19 billion.
Breakdown by loan currency
Most borrowers (316,941 individuals) took foreign currency-denominated mortgage loans, their stock amounting to lei 53.89 billion. Borrowers with CHF-denominated loans account for 10.0 percent of total borrowers with foreign currency-denominated loans, the stock of CHF-denominated loans coming in at lei 7.32 billion.
Breakdown by loan amount
Most borrowers, i.e. 99.05 percent or 469,910 individuals, contracted loans of up to EUR 150,000. The payment discipline of individuals who took loans of more than EUR 150,000 is currently significantly lower than that of borrowers who contracted smaller-value loans. The non-performing loan (NPL) ratio is 27.74 percent for the first category and 4.16 percent for the second.
Debt-servicing capacity
The NPL ratio is 2.64 percent for housing loans and 6.69 percent for mortgage-backed loans to individuals. The individuals who took mortgage-backed consumer loans have the lowest debt-servicing capacity, the NPL ratio standing at 12.43 percent in this case.
The number of defaulters with mortgage loans equals 13,443 for those having overdue loans between 30 and 90 days and 17,572 for those having loans more than 91 days past due. The breakdown of borrowers facing repayment difficulties is as follows:
- the number of defaulters with housing loans: 3,099 having overdue loans between 30 and 90 days and 2,912 having loans more than 91 days past due;
- the number of defaulters with other real estate investment loans: 2,254 having overdue loans between 30 and 90 days and 4,446 having loans more than 91 days past due;
- the number of defaulters with other mortgage-backed loans: 8,548 having overdue loans between 30 and 90 days and 10,928 having loans more than 91 days past due.
“First Home” programme
The number of borrowers who contracted loans under the “First Home” government programme amounts to 159,106 or 91.4 percent of total borrowers with housing loans. The NPL ratio of individuals who took such loans is 0.04 percent.
Breakdown by borrower income
Most individuals who took mortgage loans, i.e. 65.1 percent, earn income lower than the economy-wide average or do not have wage-related income. In their case, the loan stock amounts to lei 47.58 billion. Out of total wage-income earners, below-average earners have faced more repayment difficulties, the NPL ratio standing at 7.10 percent in their case. In contrast, the NPL ratio for above-average earners is 1.79 percent.
Breakdown by indebtedness level
The number of borrowers with housing loans and other real estate investment loans, whose debt service to income (DSTI) ratio is higher than 65 percent, totals 44,936, of which:
- 43,251 individuals who provided residential buildings as collateral;
- 1,685 individuals who provided land as collateral.
The NPL ratio for borrowers with a DSTI ratio higher than 65 percent and who provided residential buildings as collateral stands at 5.15 percent. The NPL ratio for borrowers with a DSTI ratio lower than 65 percent and who provided residential buildings as collateral is 1.0 percent.
Breakdown by real estate collateral
Most borrowers with mortgage loans, i.e. 96 percent, provided residential buildings as collateral. The number of borrowers who provided land as collateral equals 15,425 (or 4 percent) out of a total number of 474,420 individuals with mortgage loans. The debt servicing by individuals who provided residential buildings as collateral is significantly better than that by individuals who provided land as collateral (the NPL ratio for these two categories stands at 4.74 percent and 29.33 percent respectively).
Breakdown by number of foreclosures
Based on their reports, banks held on their balance sheets assets resulting from foreclosures, consisting in 316 houses/flats (worth lei 162.8 million) and 259 land plots (worth lei 118.9 million). The stock of loans backed by houses/flats under foreclosure amounts to lei 2.7 billion (estimated, on average, at lei 515,096, representing an estimate of 5,230 houses/flats). The stock of loans backed by land plots under foreclosure comes in at lei 1.46 billion (estimated, on average, at lei 459,208, representing an estimate of 3,177 land plots).