The Model
Vivienda Viva introduces a preventive risk-sharing layer designed to complement traditional mortgage structures.
The model is built around the creation of a predefined, limited payment buffer supported by third-party capital.
This buffer is designed to be activated in situations of temporary borrower stress, before a default occurs.
The objective is to reduce early-stage default probability while improving portfolio stability without altering bank underwriting processes.
The model aligns the interests of financial institutions, investors, and broader housing stability objectives.
How it works
1. Standard Origination
The financial institution originates the mortgage following its standard underwriting and risk assessment criteria.
2. Risk-Sharing Layer
A third-party investment vehicle provides a predefined, limited payment buffer linked to the mortgage portfolio.
3. Preventive Activation
If the borrower experiences temporary payment stress, the buffer can be activated before a default occurs, maintaining the loan as performing.
4. Portfolio Stability
The mechanism reduces early-stage defaults and improves stability for financial institutions.