President Enrique Peña Nieto closed the 112th Annual General Assembly of the Institute of the National Housing Fund for Workers, one of the most solid pillars of social security in Mexico. The Institute is the backbone of mortgage financing in the 32 states and a factor of prosperity and development for the entire nation.
“INFONAVIT is the main Mexican state institution working to ensure that families can exercise their constitutional right to dignified, decent housing."
During the current administration, INFONAVIT has granted 2,050,000 housing loans, benefiting over 7.5 million Mexicans. This means that in just three years, it has granted 1 out of every 5 of the loans it has provided throughout its history.
This institutional effort, which includes co-financed loans with private banks, created earnings of over 530 billion pesos, triggering productive investments in over 30 sectors linked to housing construction.
INFONAVIT’s achievements during this administration were achieved in the context of structural change brought about by the new National Housing Policy with four priority objectives:
• Achieve More and Better Interinstitutional Coordination;
• Shift towards a Sustainable, Intelligent Urban Development Model;
• Responsibly Reduce the Housing Lag and
• Ensure Adequate Housing for Mexicans.
1. INFONAVIT has become the main promoter of sustainable housing. Today, all new homes, financed by the Institute, have eco-technologies that save water, electricity and gas, which helps reduce families’ monthly bills and allows developments to be more environmentally-friendly.
2. The Institute is playing a key role in enabling families to obtain access to decent housing: larger, better quality and closer to the workplace. To that end, this organization:
-Increased the maximum amount of credit available, from 236 to 415 times the minimum wage;
-Instituted a credit scheme in pesos, which provides greater protection for mortgage holders from annual minimum wage increases. To date, over 560,000 loans in this modality have been granted.
-Eliminated practically all financing housing for one-bedroom dwellings;
-Introduced Quality Coverage, to protect homes from structural and waterproofing flaws.
3. It has allowed hundreds of thousands of beneficiaries with limited resources to have access to decent housing. During this administration, 73% of its loans have been for workers earning less than 5 minimum wages. Over 400,000 workers received a federal subsidy to make a down payment on their new home.
4. This is helping to reduce the housing deficit. Between 2012 and 2014, the proportion of families in this condition decreased from 31.2 to 29.2% across the country; whereas in the subgroup of beneficiaries, it was reduced from 18% to 16.4%.
5. This is contributing to workers' savings, so that more families can have their own home. In 2014, the Housing Subaccount earned an annualized return of 6.5%, and 6.8% in 2015, both above the average earnings of other similar instruments.
“Through these advances, INFONAVIT has become a modern, efficient and reliable financial institution, with proven social commitment. But above all, it is an institution that fully assumes its responsibility to Mexican families.
Just today, INFONAVIT has given us another example of its contribution to social development in the formal delivery of loan number nine million to Leticia Maldonado in the state of Colima.”