MORTGAGE FINANCING SYSTEM, PAST, PRESENT, FUTURE

Abstract

This paper aims to provide an in-depth review of the mortgage financing system in Mongolia, by performing a Desktop review utilizing available information. The jumpstart to Mongolia's mortgage financing system began as a part of a larger initiative aimed at supporting the construction sector and stabilizing housing prices. The initiative began from a memorandum of understanding signed between the Mongolian government and the Central Bank of Mongolia in 2012 and aims to create a long-term, stable housing financing system. Yet, the financing activities of the program have proven to be a burden on financing sources, bringing to question the sustainability of the program as a whole. Thus, the main goal of the study is to identify current market failures and recognize a sustainable mortgage financing system that maintains the goal of improving housing conditions, reducing environmental pollution, and mitigating local migration. The study will involve a historical overview of the current system, then a comparison of housing financing methods implemented globally, drawing on available information and data provided by industry stakeholders. The ultimate aim is to provide an actionable method of making the program more sustainable.