Cédulas Hipotecarias are notes issued by a credit entity with the backing of the whole mortgage portfolio of the financial entity itself.
They've got a double guarantee, backed by the issuer and by the whole mortgage portfolio. Beyond this guarantee, there is an issuance limit of the 80% of the eligible portfolio, which is the one that have the following requirements:
- The loan granted can not exceed the 80% of the value of the asset mortgaged appraisal for the funding of the construction, rehabilitation o acquisition of housing, and a 60% limit for the rest of mortgage loans.
- The house has to be assess by an independent appraisal company.
- The property has to be registered in the Property Register.
- The mortgages have to be constituted over assets that belong completely to the borrower.
- The assets over the ones the mortgage is conceded, needs to have an insurance policy, that covers at least the appraisal value.