Other measures included putting a cap on annual rent increases, allowing for compensatory wage increases to be in line with official inflation rates, providing food subsidies and low cost housing for the poor, and extending the mortgage duration
from the existing average of 10 years to 25 or 30 years as is the case in several other markets.
adjustable rate originations and mortgage duration
Such a policy could be implemented with caps on elements such as loan-to-value ratios, loan-to-income ratios, and mortgage durations
, or imposing ceilings on the amount banks are permitted to lend, should prices exceed a given limit.
In this environment, as mortgage durations
shortened the company increased its volumes of short-term debt--and raised its percentage of option-based debt, including interest rate caps--to maintain a close duration match on its mortgage portfolio.