Bill 662.

Summary.

The bill provides for a gradual shutdown of the National Mortgage Bank (Banco Hipotecario Nacional) under principles of social interest, continuity of public service, financial sustainability, legal certainty, administrative efficiency, urban inclusion, and institutional coordination. A Transition Committee (Comité de Transición) would prepare an Institutional Transition Plan for approval by the Executive Branch (Órgano Ejecutivo). The process would begin upon promulgation and could not continue beyond December 31, 2027. The Committee would include the Ministry of Housing and Land Use Planning (Ministerio de Vivienda y Ordenamiento Territorial), the Ministry of Economy and Finance (Ministerio de Economía y Finanzas), the Savings Bank of Panama (Caja de Ahorros de Panamá), and the Office of the Comptroller General (Contraloria General de la República).

Housing policy design, oversight, subsidies, social housing programs, planning, public-private projects, and territorial coordination assigned to the bank under Law 123 of 2013 would pass to the Ministry of Housing and Land Use Planning. The Savings Bank (Caja de Ahorros) would take over mortgage financing, credit administration, and financial product design. Its Board of Directors would establish a special arrangement for transferring loan portfolios and maintaining service to transferred users. These portfolios would be managed separately from the bank’s operations, financial statements, risks, and reserves. MIVIOT would deliver the portfolio, and the Banking Superintendency (Superintendencia Bancaria) would issue the corresponding resolution.

The bill would create the National Housing Fund Directorate (Dirección del Fondo de Vivienda Nacional), attached to the Ministry of Housing and Land Use Planning. It would coordinate subsidies, interest rate differentials, mortgage guarantees, settlement regularization, resettlement, and identification of land for social housing. It would also take part in land acquisition, public-private housing projects, and recommendations on financing purchases of the Ministry’s housing projects. Private entities could participate in projects to build homes for sale or social rental; the State’s participation could not exceed 49%. Contributions would be formalized through cooperation agreements and trusts administered through the Savings Bank. Land contributed by private entities would have to meet zoning, utilities, road access, location, and economic conditions and be placed in a trust benefiting the State.

The bank’s assets, together with property originating from the Mortgage Insurance Promotion Institute (Instituto de Fomento de Hipotecas), the Housing and Urban Planning Institute (Instituto de Vivienda y Urbanismo), and Ministry purchases, would become national property assigned to the Ministry. The bill links those property transfers to Law 3 of January 8, 1974, and Executive Decree NO.15 of April 17, 1980. For occupied property without a registered title, the Ministry would award ownership by resolution to the recorded occupant or borrower, securing the debt by mortgage. Multifamily housing would be registered under the condominium regime; the Public Registry (Registro Público) would register awards without charge and without requiring the specified clearance certificates. Staff would receive employment entitlements, except the manager and deputy manager. The Executive Branch would issue implementing regulations. The bill would repeal Law 123 of December 3 J, 2013, and article 21 of Law 24 of October 28, 2014, and would take effect the day after promulgation.

The provisions involve the Public Registry, housing, finance, and banking supervisory authorities, and could concern occupants, borrowers, real estate developers, financial institutions, and participants in social housing programs.