The objective of the proposed changes is to expand the options so that the body's beneficiaries can exercise their financing

 Recently, the Chamber of Deputies approved the opinion that reforms and adds various provisions to the Infonavit Law (Institute of the National Housing Fund for Workers).

The initiative was presented by President Andrés Manuel López Obrador, with the intention of consolidating the right of workers to choose what to do with their credit . This broadens the options to exercise financing and establishes in the law that workers can receive the resources directly and use them in the solution that best meets their needs.

This reform to the Infonavit law raises six specific points, which can be summarized as:

  1. Allow to use the credit for the purchase of land.
  2. Define explicitly in the law self-production as a possibility of destination of the credits granted.
  3. Open a specific line for the refinancing of credits acquired with another financial institution.
  4. Establish in the law the worker's right to receive credit directly, without intermediaries.
  5. Remove the limitation for Infonavit to deliver more than one loan.
  6. The opportunity opens for inactive workers to be subject to credit.

This initiative was well received by both the business and labor sectors; and, for the directors of Infonavit, it opens an opportunity to expand credit options for the benefit of workers, and reaffirms the tripartite vision of the Institute.

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Expectations after the reform of the Infonavit law

Carlos Martínez, general director of the Institute, stressed that the reform is not only viable, but necessary, since it can also be conceived as an initiative of financial inclusion, by allowing sectors of the population that have not had access to credit, now have it .

He added that the additions to the Infonavit law will benefit at least 320,000 workers, since, of the 5 million prequalified beneficiaries, this number of beneficiaries would use their credit to purchase land.

“There is a need to buy land with Infonavit credit. As we move forward and implement the reform , we will see that there is more need; but also that new markets are being formed. This will predominantly impact the south-southeast part of the country, compared to the other lines of credit, ”he said.

In this sense, according to the official, the Law is expected to have significant impacts during the first year of its implementation.

In this regard, as stated by Martínez, the perspective is that by allowing workers to request more than one loan, during the start-up stage of the new provisions, at least 5,000 subsequent loan actions are carried out. Likewise, he pointed out, by opening the option for beneficiaries to refinance a home loan, it would be expected that at least 35,000 workers would opt for this alternative.

Similarly, Carlos Martínez stressed that the changes would allow that during the first year, at least 10,000 workers who are not actively contributing to Infonavit can be subject to credit. This by opening the option of using the savings generated in the organization as a down payment and requesting financing for housing with banks.

Although the deputies endorsed the opinion, there is still a way to go for the reforms to become official. And it is that after the approval in San Lázaro, now it will be up to the Senate to analyze and, where appropriate, approve the opinion.

Source: Urban Center